An arrangement where the bank purchases or discounts the trade bills under collection. To finance seller’s local sales / export bill before payment is received from buyer.
- EP-i is based on Shariah contract of Bai’ Al-Dayn (sale of debt)
- Payment terms – sight or usance bills up to 180 days
- Denominated in RM or major foreign currencies
- No minimum amount of financing
- Margin of financing is up to 100% (at bank’s discretion)
- Bank handles and monitors the collection of proceeds
- Obtain financing before actual payment or acceptance from buyer / importer