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Grow your business locally or internationally with Bangkok Bank Berhad. With our experienced trade specialists coupled with our established global footprint, we are the ideal partner for your global reach. We are committed in helping you to achieve the most out of your business with our various trade products.
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 Import Bills for Collection
An Import Bills for Collection (IBC) is a trade service provided by the bank, as a Collecting/Presenting Bank to handle and inform customer’s incoming shipping documents from their supplier. The intermediary service facilitates trade settlement on terms agreed between the customer and their supplier.
The handling by the Collecting/Presenting Bank of the shipping documents is based on instructions received, in order to obtain payment or acceptance or based on other pre-determined terms and conditions.
The Collecting/Presenting Bank will carry out the instructions against specific instructions such as:
- Delivering documents against Payment (D/P) i.e. Sight - whereby the Collecting/Presenting Bank will only release the documents to the Buyer upon payment is received.
- Delivering documents against Acceptance (D/A) i.e. Usance - whereby the Collecting/Presenting Bank will release the documents to the Buyer upon acceptance of the Seller's bills of exchange.
The main governing set of rules for an IBC is the latest version of Uniform Rules for Collections (URC).
 Benefits:
- Cost-effective
- Flexible and time saving as less rules and deadlines for document preparation
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Bankers Acceptance
Bankers Acceptance (BA) is a usance bill of exchange drawn by the customer (Drawer) to his order and accepted by his bank (accepting bank) and payable on a specified future date. BA operations in Malaysia are strictly guided by the current Guidelines on Bankers Acceptances issued by Bank Negara Malaysia.
BA can be used to finance import, local purchase, export and local sales of goods. Business activities for the purchase of computer software licenses, trade-related logistic services and the purchase of electricity from independent power-producer may be considered for financing with BNM’s prior approval.
BA is denominated in Ringgit (RM) drawn on and accepted by a bank in Malaysia. The minimum period of financing is 21 days and the maximum period must not exceed the approved financing tenure subject to a maximum period of 365 days. The maturity date should not fall on Saturdays, Sundays or public holidays. The minimum financing amount is set at RM50,000.00 and should be in multiples of RM1,000.00. The funding rate is based on the Interbank market on a daily basis.
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Trust Receipt
Trust Receipt (TR) is an agreement between the bank and its customer (the importer/buyer) which is used to secure an advance. With this, the bank releases documents and goods without releasing the title to the goods.
Under a TR arrangement, the customer:
- Pledges himself to act as agent and trustee for the bank in handling the underlying goods;
- Agrees that the goods as well as any proceeds from its sale, shall be maintained separate and Distinct from other property and remain subject to repossession by the bank; and
- Undertakes to keep goods fully insured and shall hand over any eventual claims to the bank.
TR as a financing product enables the customer:
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To settle his payment obligation for his imports/purchases;
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To take possession of the goods for a predetermined tenure while payment will be made at maturity date; and
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To sell the goods or in the case of raw materials, to turn them into finished products for sale/export.
Benefits:
- Interest is payable on maturity
- Financing for full invoice amount is allowed
- Early or partial payment is allowed
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Foreign/Domestic Bills Purchased/Discounted
Foreign / Domestic Bills Purchased / Discounted is a form of short term export/sales financing in which the exporter or seller obtains from his bank upon presentation of export documents drawn under documentary collection. By purchasing and advancing the customer, the bank becomes the holder of the bill in due course and shall only be repaid upon receipt of proceeds or reimbursement from the collecting bank.
When the bank purchases a bill, it will advance money to the customer on presentation of a set of export or sales documents and interest will be charged on the amount advanced until the bank receives reimbursement. The advance is given against customer’s credit line.
Benefits:
- Improved Cash Flow and Competitiveness
- Financing for domestic or foreign sales with or without Letter of Credit
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Export Letter of Credit Advising
As an Advising Bank, the bank will receive customer’s incoming Letter of Credit from the customer’s supplier’s bank through the bank’s local or overseas Correspondent Banks.
The Letter of Credit can be in the form of SWIFT, Mail or Telex. Once the authenticity of the Letter of Credit is verified, the bank will advise the Letter of Credit to the Exporter (Beneficiary) or their banker’s (the Second Advising Bank) accordingly.
At the request of the Issuing Bank or Beneficiary’s and by arrangement, the bank may add confirmation whereas the bank’s liability as a Confirming Bank is similar to the Issuing Bank.
However, such confirmation will be solely at the bank’s discretion and the acceptability of the terms and conditions of the Letter of Credit will be at the time the confirmation is added.
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Export Bills for Collection
An Export Bill for Collection (EBC) is a trade service provided by the bank, as a Remitting Bank to send out the customer’s outgoing shipping documents to their buyer. The intermediary service facilitates trade settlement on terms agreed between the customer and their buyer.
The handling by the Remitting Bank of the shipping documents is based on customer’s instructions in order to obtain payment or acceptance or based on other pre-determined terms and conditions.
The main governing set of rules for an OBC is the latest version of Uniform Rules for Collections (URC).
Benefits:
- Cost-effective
- Flexible and time saving due to less rules and deadlines for document preparation
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Export Credit Refinancing (ECR)
Export Credit Refinancing (ECR) is a scheme extended by Export-Import Bank of Malaysia Berhad (EXIM Bank) to provide short term financing to direct and indirect exporters via the commercial banks. This scheme is presently governed by EXIM Bank’s Guideline on ECR Facilities 2006.
The objective of the ECR scheme is to promote Malaysia’s exports and International Trade via 2 types of facilities:
1. Pre-Shipment: an advance by Exim Bank to facilitate the export of Malaysian products and trade prior to shipment and to encourage the backward linkages between the exporters and local suppliers in export oriented industries.
2. Post-Shipment: an advance to exporters to finance the export or trade after shipment.
Benefits:
- Competitive interest rates
- Pre-Shipment provides working capital
- Post-Shipment provides advance funds to the exporters to finance exporting of eligible goods after shipment
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