An instrument allowing you to pay for goods/services/expenses with the Bank’s funds and only pay it back at a later date
- Imagine you’re a glove exporter and you need to purchase raw material such as rubber lumps from a local rubber estate owner
- In view of huge demand due to COVID-19, you would like to purchase as much raw material as possible as you have a large order to fulfil
- With this trade finance facility, you may negotiate better terms and discounts as you are able to pay upfront in cash with the bank
- Imagine you’re a BMW car dealer, you are about to import 20 units of BMW cars from Germany and BMW is offering you a deal of 10% discount if you pay everything in cash
- If you do not have that much of cash, you may approach our bank to get this financing so the bank would first pay on your behalf
- With this trade finance facility, you are able to enjoy the 10% discount and thus increasing your business’ profit margin
- 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)