Documentary Credit (LC)

A Letter of Credit (LC) is an undertaking from a bank issued on behalf of a buyer to guarantee payment to a seller against presentation of compliant documents under the terms and conditions stipulated in the LC.

Our teams of experts are able to guide you in constructing your LC as to ensure that your interest is protected at all times and thus minimizing your risk. We also provide you with one stop hassle free marine insurance coverage at competitive premium through AXA Affin General Insurance Bhd as a preferred insurance.

As part of our commitment to you, we are able to issue LCs to most parts of the world in different currencies through our 700 correspondent banks worldwide.

For buyers, LCs established will prove his credibility and financial standing and thus he can negotiate for better credit terms & pricing. And as for the seller, it is a confirmed order by the buyer and payment assurance is undertaken by a bank when he complies with the terms and conditions of the LC.

Trust Receipt (TR)

Trust Receipt financing is a short term financing provided by us to buyers for their working capital requirement. The bank releases the shipping documents to the buyer against his undertaking to act as trustee or agent for the bank. The buyer will take possession of the goods, sell the goods and pay the bank the principal amount with interest.

Average tenor of the TR is determined based on the buyers’ trade cycle to convert the goods into cash and pay the bank.

We allow you to finance 100% of the invoice value with no minimum financing amount and allows early or partial settlement where interest is calculated up to the actual number of days financed.

Foreign Trust Receipt (FTR)

Like TR, FTR is specially designed to help buyers mitigate their foreign exchange risks and leverage on potential savings on interest rates. This facility is offered to buyers who have receivables in foreign currency. Most financing is structured to match the foreign currency receivables of our customer.

Bankers Acceptence (BA) – Purchase

This is another short term financing to finance your purchases from resident or non-resident on sight or usance terms. You will have to draw a bill of exchange payable at a predetermined maturity date to be accepted by us. The BA is then discounted and the supplier is paid off or we will reimburse you if payment has been made upfront.

The underlying commercial transaction to support the drawing of a BA can be documents presented under an LC, documents presented under collection basis or purchases on open account terms. The advantage of the BA facility is the financing at competitive prevailing money market rates.

Shipping Guarantee (SG)

At times, goods reach the destination port much earlier than the shipping documents. Extended storage of goods by the agents will incur demurrage charges which are costly. Under such situations, the buyer who has imported the goods under an LC is issued a SG to clear the goods in the absence of the bills of lading.

This service allows massive savings on port charges or demurrage fees and allows faster clearance of goods in cases of late receipt of bill of lading.

Advanced Endorsement (AE)

We provide endorsement on your original transport document when such document is consigned to the order of Affin Bank as to enable you to take possession of the goods.

This service allows massive savings on port charges or demurrage fees and allows faster clearance of goods in cases of late receipt of complete set of import documents drawn under our LC.

Inward Bills For Collection (IBC)

We handle collections documents (non-LC) against payment (DP) or acceptance (DA) received from your suppliers’. At Affin Bank we can act as the intermediary to facilitate your trade settlement on terms agreed with your supplier. Your documents arrival will be notified to you within the same day for you to make arrangement for payment or acceptance as to enable you to arrange for immediate clearance of your goods.

Flexi Trade Loan (FTL)- Purchase

FTL Purchase is a facility offered to a Buyer for financing of its trade related foreign and local purchases (sight or usance)


  • Foreign and Local Purchases (sight or usance) of goods and/or selected services payable under the following terms of payment:

         i. Letter of Credit (LC)
         ii. Collection
         iii. Open Account  

  • Minimum Drawdown Amount RM10,000 or its equivalent in other currencies
  • Available in Ringgit Malaysia (RM) and other major currencies as advised by Group Treasury
  • Tenor is determined based on seller’s trade cycle with maximum tenure of up to 360 days
  • Financing proceeds to be paid directly to the suppliers named in the supporting invoices
  • Reimbursement within 30 days from the date of payment effected by the Buyer to seller.

Benefits to Buyer

  • Customer (a Buyer) is able to settle payment obligations to Suppliers promptly and enjoy discounts while maintain a good standing.
  • Take possession of the goods immediately without having to repay until the end of the financing period.
  • Financing of paid invoices (Reimbursement) allows flexibility in managing your cash flow.
  • Simple document preparation as financing is also allowed for both Open Account and Collection term of payment.
  • Alternative financing for both RM and foreign currency
  • Flexibility in financing amount and financing period

For more information, please call our Trade Finance Centre at:
Kuala Lumpur: (6) 03 2178 5000
Ipoh : (6) 05 549 9959
Penang: (6) 04 398 8233
Johor: (6) 07 386 7597


How to Apply

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