Trade Finance

Import Services

Import services typically involve facilitating import of goods and services, clearance of goods in the event of non-receipt of shipping documents and import bills financing.

Range of import-related services includes the following :-

Documentary Letter of Credit (LC)

A Documentary Letter of Credit (LC) is a popular instrument that gives the Beneficiary (Supplier) greater assurance of payment provided that the required compliant documents are presented. Applicant (Buyer) will be assured that payments will only be released upon presentation of stipulated documents that comply with all the terms and conditions in the LC.

Furthermore, the importers can enjoy the flexibility of a hassle-free marine insurance coverage and loads of other benefits by insuring locally when you import on FOB/CFR basis or switching of trade terms to enjoy greater benefits.

Documentary Letter of Credit (LC) is typically issued within a 24-hour turnaround time. An LC can be ready for collection by your supplier the moment you touch down at the supplier's destination on the same day (subject to prior arrangement).

Application for or amendments to LC can be via Internet Banking.

Shipping Guarantees

If the non-receipt of shipping documents on arrival of the import vessel is a concern for you, banks issue Shipping Guarantees on a pre-arranged basis to secure the release of the goods, thus reducing demurrage and other related charges.

Inward Bills Collection

If you want the flexibility of import without an LC, banks can assist in handling your Inward Bills Collection against payment (DP) or acceptance (DA) received from any of your suppliers' bank.

Import Financing Instruments

You may also be eligible for access to financing of Inward Bills to capitalise on the competitive interest rates offered on our Banker's Acceptances or Trust Receipts. These are structured with your interest and requirements in mind.

Banker's Acceptances

A financing facility available to a local buyer / importer and local seller / exporter at competitive prevailing money market rates. Buyers / importers can capitalise on this financing instrument to pay cash to their suppliers in order to obtain a discount and the seller / exporter can have direct access to immediate funds for working capital. Financing amount is typically in multiples of RM1,000 and the minimum BA financing amount is typically RM50,000. Financing period ranges from a minimum period of 21 days to a maximum of 365 days.

Trust Receipt

Local buyer / Importer who request for financing under Trust Receipt acts as a trustee to the bank to sell the goods on behalf of the bank. This gives the buyer / importer the flexibility to take immediate delivery of the goods and repay the bank at a later date with proceeds from the sale of the goods.

Financing may be in Ringgit. Alternatively, the importer can take advantage of lower foreign currency interest rates to request for financing in the currency of that particular import documents. Terms and conditions apply.

Invoice Financing

Increase your cash flow and working capital with Invoice Financing as it finances payables that are not eligible for financing under conventional trade instruments. Invoice Financing finances transactions which include purchases of services (freight/transport and haulage charges, advertising charges, warehousing services, custom duties, port charges, insurance premiums, utility/telco charges, computer software licenses), intangibles and other business inputs (fuel, diesel, gas) that are consumed in the course of the manufacturing process, and all relevant charges/payments incurred which are not incorporated as part of the value of the trade bill.

Supply Chain Financing

This innovative financing consists of Vendor Financing and Buyer Financing. It places value or premium on the stability of the trading relationship between the buyer and seller as opposed to the traditional funding models where the supplier or buyer is evaluated on a stand-alone basis. It leverages on the strength of either the anchor supplier or anchor buyer.

Vendor Financing

Banks discount pre-approved trade receivables of your vendors (on a recourse/non-recourse basis) against your undertaking to pay on maturity of the financing.


Buyer Financing

Banks finance sales to your buyers so that you can get your cash faster and generate greater sales.


Export Services

As an exporter, you may be eligible for our pre and post Shipment Financing facilities. Banks can provide exporters with a range of pre-arranged facility to improve their cash flow while waiting for payment from your export documents.

Export-related services includes the following:

Letter of Credit

Advising the bank ensures that all export Letters of Credit are authenticated before advising the exporter to give you that peace of mind to concentrate on your export manufacturing.

e-LC (electronic advice of Letter of Credit)

Exporters no longer need to wait for the hard copy LC to start preparing your trade documents. With e-LC, a softcopy of your inward Letter of Credit will be sent directly to your nominated e-mail address. It is encrypted and password protected so you can be assured that the e-mail sent to you is secured. Besides providing an alternative & efficient means of receiving LC and LC amendments, it also enhances accuracy in preparation of export documents where you can cut and paste relevant LC text onto your trade documents. This increases efficiency and convenience in sending relevant information to other parties (e.g. shipping and insurance companies).

Packing Credit/ Export Loan

Pre-shipment working capital financing provides you with the facilities to ease your cash flow and finance your working capital while you fulfil your order.

Documentary Collection

Provides you with a flexible and cost-effective way of managing your collection (D/A - documents against acceptance or D/P - documents against payment) while retaining some control over your documents. Banks will do the monitoring of the status and the collection of payments for you.



Bills of Exchange Purchased

Arrangements can be made to provide an advance to bridge your financing requirements while DA/DP documents are being sent on a collection basis. A pre-approved facility is required for this service.

Credit Bills Purchased

Facility can be arranged for same day crediting of proceeds to the exporter for negotiation of compliant shipping documents under the exporter's Letter of Credit. To further ease the exporter's cash flow, special consideration may be arranged for documents that fall short of the requirements.

Export Credit Refinancing

Pre-Shipment: facilities for financing the working capital requirements of the exporter.
Post Shipment: facilities for financing of usance exports.

Direct Collection Direct

Collection eradicates the need to present everything to your bank first, before you can get things moving. Simply forward everything to your buyer's bank, and from then on, your Bank will monitor payments on your behalf. With it, you eliminate time wastage, reduce costs and quicken payments. With Direct Collection there is no cut-off time in sending of documents.

Bank Guarantee

This is usually a written undertaking issued by a bank at a customer's request in favour of a third party (the beneficiary) guaranteeing payment in case of default. Banks are able to support your business by providing performance bonds or financial guarantees to your beneficiaries. Such guarantees, being part of contracts for exporting goods and services may be used to guarantee a contractor's / builder's obligation in the construction industry.

Standby Letter of Credit

A fast growing financial instrument locally and globally. Standby Letter of Credit (SBLC) falls under the ambit of Uniform Customs & Practice for Documentary Credits (ICC Publication 500 or International Standby Practices 1988 / ISP98) both being internationally accepted set of rules and regulations governing SBLCs. It provides a measure of protection to customers who prefer SBLC.

Structured Financing

Banks can structure and customize your special trade financing needs to cater for a Special Project you may have been awarded with. You can also utilize our trade finance services to better manage your cash flow or for working capital requirements.

On-line tracking via Business Internet Banking generally meant for tracking of export bills such as Negotiation Bills (NG), Bills Purchased (BP), Outward Bills under Collection (OB) and Outward Bills under Letter of Credit (BC), going out to the importer's bank can be via export bills reference number instead of using airway bill number.