Promissory Note (PN)


An unconditional promise in writing (Bill of Exchange) issued by borrower for a fixed amount in favour of the bank, engaging to pay on a pre-agreed future date, to finance business related transaction. To provide customers with an alternative trade financing product that is flexible enough to accommodate the financing of products, services, invisibles and “items” not financed by the other trade financing products which are related to their normal line of business.

  • Can finance either Purchase or Sales of trade related goods and services
  • Drawn in Ringgit Malaysia or any major Foreign Currencies
  • Max 365 days (Purchases) and 180 days (Sales)
  • Scope of financing:
    • Pre-shipment financing against LC or export orders
    • Trade receivables
    • Purchase of Capital goods
    • Services rendered
    • Financing of invisibles (freight charges, insurance, warehousing, utilities, salaries etc.)
  • Margin of financing is up to 100% (at bank’s discretion)