Export Financing
Bankers Acceptance (BA) - Sales
The exporter sells on credit terms, draws a usance bill of exchange on the Bank for acceptance. Subsequent to the acceptance, the BA can be discounted with us. On maturity date, the BA is liquidated with the export proceeds or charged to the exporter's current account.
The minimum amount of the BA is RM50,000.00 and the maximum ternor for sales to non-residents shall not exceed 180 days.
The supporting documents to support the drawing of the BA can be shipping documents evidencing export on credit terms (under LC or collection) or invoices issued under Open Account terms.
Bill Purchase
A facility for exporters who sell on sight terms under LC or collections. The sight documents will be purchased by the bank and immediate value given to the exporter. It is a short term advance to cover the transit period for the payment to be received for the shipment, averaging from 7 to 14 days.
Bill Discounting
This facility is for exporters who sell on credit or usance terms. Under normal circumstances, the exporter will have to wait till the maturity date to receive payment from the buyer. Under this facility, the exporter will present the shipping documents and the bank will discount the documents at a discounted rate. The discounting can be either upon presentation of documents or upon acceptance of the bill of exchange by the buyer.
The exporter will receive the discounted proceeds. The advance given by the bank will be settled upon receipt of the export proceeds.
Bill Negotiation
Documents drawn under LCs issued by prime banks acceptable to the bank are negotiated and the exporter given the proceeds, less interest or discount, without recourse. A line of credit is not required for this facility but the exporter must be an account holder of the bank.
Export Credit Refinancing (ECR)
The ECR Scheme was introduced by Bank Negara Malaysia (BNM) in 1977 to promote Malaysia's export and international trade via the pre-shipment ECR and post-shipment ECR. The scheme was taken over by the Export-Import Bank of Malaysia (Exim Bank) with effect from 1 January 1998.
The pre-shipment ECR is an advance by Exim Bank to facilitate to export of Malaysian products and trade prior to shipment and to encourage the backward linkages between exporters and local suppliers in export oriented industries. The post-shipment ECR is an advance to exporters to finance the export after shipment.
The exporter will have to arrange for ECR facility with the bank and then submit an application to Exim Bank for consideration of access to the ECR facilities.
The pre-shipment facility can be used by direct/indirect exporters to finance purchases from domestic and/or foreign suppliers prior to shipment of the goods to the overseas buyer. Pre-shipment ECR can be availed under 2 methods, ie
- Order-based method; and
- Certificate of Performance (CP) based method.
Order based method is for new companies involved in export business for less than a year, seasonal exporters, exporters with less than RM1 million exports in the preceding 12 months or indirect exporters. Evidence by way of an export order (direct exporter) or an order from a direct exporter in the form of an LC, Domestic Purchase Order or Local Purchase Order must be produced.
For CP method, a Certificate of Performance is issued by Exim Bank which is used as a basis to avail financing under the ECR pre-shipment.
Post-shipment ECR facility is available to direct exporters who can obtain immediate funds upon presentation of export documents after goods have been shipped.
The advance given under the pre-shipment must be liquidated on or before maturity from proceeds received from the post-shipment (direct exporter) and local sales (under the ECR Scheme) proceeds received. Post-shipment loans must be settled upon receipt of export proceeds or maturity of the post-shipment bill, whichever is earlier.
Our team of experts are always available to provide advise on trade related matters and also conduct briefings for your staff at your office. Generally, we will process your applications/documents within 24 hours of receipt.
Export under Documentary Collection
We can assist our export customers who export without LCs to present shipping documents and collect payment on DP or DA terms. With our wide network of correspondents worldwide, we are able to present documents and collect payment quickly.
