Documentary Credit (LC)

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

Features

  • A written undertaking by the Bank (Issuing Bank) to the seller (Beneficiary), at the request and on the instruction of the buyer (Applicant), to pay at sight or at the determinable future date up to a stated sum of money with a prescribed time limit and against the stipulated documents which are in accordance with terms and conditions of the LC
  • Payment terms varies depending on arrangement between buyer and seller
  • Types of Special Clause LC such as Transferable LC, Back to Back LC, Stand-by LC, Revolving LC and Red Clause LC

Benefits

Buyers:

  • Buyer credit risk is substituted with that of Issuing bank
  • Able to negotiate with seller for better credit terms and pricing
  • Obtain subsequent financing at competitive rates
  • One stop hassles free marine insurance coverage at competitive premium
  • Minimize risk of non-delivery or late shipment

Seller:

  • Assured payment against compliant documents
  • Don’t have to worry on financial standing of buyer
  • Confirmed order & no worry of cancellation without consent
  • Retain control of shipping documents
  • Secure financing at competitive pricing

Eligibility

  • Malaysian buyers (Domestic Purchases & Imports)

Requirements

  • Approved LC Facility with the bank
  • Application to be accompanied by copy purchase order or sales contract, if available

How to Apply

  Leave us your contact details so that we may reach out to you

Click here

  Contact our Call Centre at +603-8230 2222 or visit the nearest Business Centre nationwide today.

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