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| Usage |
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| For import or local purchases of goods, materials or equipment |
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| Features |
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| A written undertaking by a financial institution to pay a seller a given amount of money subject to the following conditions: |
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On presentation of specified documents as set out in the terms and conditions of the LC |
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Within a specified time limit |
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At a specified place |
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| Benefits |
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Assures payment is made to the beneficiary |
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Able to obtain a lower purchase price of the goods and longer payment terms |
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Documents presented will be examined by trade financing specialists |
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Less communication with the foreign seller as the whole transaction will be routed and handled by the financial institution |
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| Usage |
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| As a means of working capital financing for exporters |
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| Features |
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Financial institution may purchase customers’ outward bills for collection and the customers’ account is credited immediately with the proceeds |
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| Benefits |
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Able to obtain immediate funds upon presentation of necessary documents |
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Able to improve cash flow of the business since SMEs can obtain immediate funds from the financial institution |
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| Usage |
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| Extends credit facility on bills drawn under the financial institution's own LC. |
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| Features |
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| Enables a customer to accept delivery of their local/foreign purchases prior to payment of the sight bills being made by them. |
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| Benefits |
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Enables the customer to pay the seller promptly |
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Enables the customer to take delivery of the goods without paying for it immediately |
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Able to ease cashflow |
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| Usage |
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| Generally for businesses that regularly import or export in foreign currencies with a credit standing that is acceptable to the financial institution |
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| Features |
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The buying and selling of foreign exchange on a spot or forward basis, in respect of foreign proceeds or payments to be made at sight or at a future determinable date. |
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| Benefits |
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Customers can fix their exchange rates for purpose of costing/hedging |
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No further exposure to exchange risk fluctuations especially in volatile markets |
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| Usage |
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| Financing of a bona fide trade such as export, import or domestic trade transaction. |
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| Features |
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A draft drawn by customers to their order, payable on a specific future date and accepted by the financial institution |
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Minimum amount of financing is RM50,000 and in multiples of RM1,000 |
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| Benefits |
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Provides cash flow before proceeds for sale of goods on credit can be collected or to finance purchases of raw materials for production |
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Can be sold at the prevailing market rate should the customer need immediate funds |
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Provides two-way financing |
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| Usage |
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| Commonly used by exporters: |
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Exporters of products with a value added of at least 20% and uses a minimum of 30% domestic raw materials and not in Bank Negara Malaysia’s negative list |
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Direct exporters of eligible goods worth RM3 million per annum in the last financial year and RM3 milion in the preceding 12 months |
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Exporters of agriculture products worth RM1 million in the last financial year and preceding 12 months |
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| Features |
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Administered by the EXIM Bank |
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Financing facilities available for Pre-shipment and Post-shipment |
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| Benefits |
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Cheap source of financing exports |
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