Trade Finance

Let us take the headache of business dealings and financing while you concentrate on growing your business. With access to 2,200 branches and offices in 20 countries and more than 900 correspondent banks worldwide, doing business has never been so good.

IMPORT SERVICES

Issuance of Documentary Credit
A document given to a seller by the bank at the request of the buyer to pay a stated sum of money against stipulated documents and compliance of the terms and conditions within a prescribed time limit.

Features:

  • Can be issued either to a local or foreign supplier
  • Governed by UCP 600 which is formulated by the International
  • Chamber of Commerce, accepted and recognised worldwide
  • Marine insurance for the Letter of Credit (LC) is available if required
  • Backed by a network of over 2,200 international offices and more than 900 correspondent banks worldwide.

Benefits:
To the buyer/applicant

  • Ability to stipulate the type of documents required as per terms agreed upon sales contract
  • Obtain financing to pay the beneficiary
  • Fulfill sales contract requirement and maintain good status
  • Ability to negotiate favourable terms from the seller
  • Provides legal protection as UCP 600 is a set of universally recognised rules governing LC operations
  • Documents presented will be examined by experienced banking personnel
  • Minimises language barriers with the foreign seller as the whole transaction will be routed through and handled by the bank.

To the seller/beneficiary

  • Guaranteed payment upon presentation of compliant documents
  • Option to have the bank confirm the LC as an additional security
  • Ability to request pre-shipment financing from the bank to purchase or process the goods before shipment
  • Option to request the bank to transfer the LC to the actual supplier i.e. trading companies
  • Ability to reduce exchange risk
  • Ability to reduce or eliminate commercial risks as payment is assured by the bank
  • Provides legal protection as UCP 600 is a set of universally recognised rules governing LC operations.

Trust Receipt (TR)
A financing facility that allows you to collect your local/foreign
purchases before payment of the Sight Bills/Usance Bills, as payment to suppliers is advanced by the bank.

Features:

  • Maximum tenor of up to 180 days (for eligible customers), determined based on the turnover period of goods.
  • Margin of advance of 100% of the bill amount plus other payments e.g. freight / carrier charges and import duties
  • A mode of financing for goods purchased under Letter of Credit or Inward Documentary Collection only
  • Financing is available for other separate payments such as freight/carrier charges and import duties
  • Early or partial settlement is allowed
  • No minimum amount or tenor of financing: financing can be on invoice value for any number of days required, subject to the Bank’s normal credit evaluation
  • You must have a facility with the bank
  • Backed by a network of over 2,200 international offices and more than 900 correspondent banks worldwide.

Benefits:

  • Settle your payment obligations to the seller promptly and maintain a good standing
  • Take possession of the goods immediately without having to repay until the end of the financing period
  • Sell the goods or turn them into finished products for sale or export without further delay
  • Improve your company's cash flow
  • Make partial payments as and when you have funds.

Shipping Guarantee (SG)
A document issued by the bank to the shipping company that allows
the importer to collect the goods from that shipping company in
the absence of a Bill of Lading.
Features:

  • Applicable for purchase of goods under the bank's Letter of Credit or under Inward Bills for Collection where the goods are consigned to the bank
  • Once the Shipping Guarantee is issued, the buyer is obligated to accept the documents presented to him by the seller even if there is a discrepancy in the documents
  • For the purpose of issuance, only a copy of Bill of Lading and invoice are required
  • Backed by a network of over 2,200 international offices and more than 900 correspondent banks worldwide.

Benefits:

  • Lets you clear goods without having to wait for a complete set of import documents
  • Helps you avoid any demurrage or other port charges
  • Improves your company's cash flow.

Inward Documentary Collection (IDC)
Bills received from correspondent banks with instruction to obtain payment or acceptance from the buyer, deliver documents to the buyer against payment, or deliver documents against acceptance and/or to obtain payment on maturity date.

Features:

  • Generally, IDC will be accompanied by either Sight Bills of Exchange for Documents Against Payment (D/P) or Usance Bills of Exchange for Documents against Acceptance (D/A) drawn on the buyer
  • In the case of D/P, the buyer will have to make the payment before documents can be released to him
  • For D/A, documents can be released upon the buyer's accepting and acknowledging on the Bills Of Exchange. By doing so, the buyer acknowledges his legal obligation to pay the face value of the Bills of Exchange upon maturity
  • Financing is available for eligible customers
  • Backed by a network of over 2,200 international offices and more than 900 correspondent banks worldwide.

Benefits:

  • Settle your payment obligations to the seller promptly and maintain a good standing
  • Take possession of the goods immediately without having to repay until the end of the financing period
  • Sell the goods or turn them into finished products for sale or export without further delay
  • Improve your company's cash flow
  • Make partial payments as and when you have funds.

EXPORT SERVICES

Outward Documentary Collection (ODC)
A bill sent to the buyer's bank (local/overseas) to obtain payment/
acceptance from the buyer, deliver documents against payment or deliver documents against acceptance and/or to obtain payment on the maturity date.

Features:

  • Applicable to both local and foreign transactions.
  • For local transactions, the seller would normally deliver the goods to the buyer and the buyer would have to acknowledge receipt of the goods before a claim is made. The delivery order is to be presented to the bank when the claim is made
  • For foreign transactions, the transport documents together with other documents such as invoice, packing list, etc are normally presented first. The document will only be released to the buyer when payment arrangement is made
  • May facilitate post-export financing for eligible customers
  • Documents of title for the goods will not be released to the buyer (drawee) until payment or acceptance has been affected
  • Backed by a network of over 2,200 international offices and more than 900 correspondent banks worldwide.

Bills of Exchange Purchased (BEP)
A facility whereby the bank purchases your outward bills for collection
under open account basis and credits your account immediately with the proceeds, which would be used to liquidate the advance.

Features:

  • Ability to obtain immediate funds upon presentation of necessary documents
  • As a means of financing for working capital requirements
  • High margin of advance is available for eligible customers
  • Simple document preparation as document is presented under a collection basis
  • Backed by a network of over 2,200 international offices and more than 900 correspondent banks worldwide.

Bills of Exchange Purchased/Authority to Purchase (BEP/AP)
A facility whereby the bank negotiates/purchases your documents upon negotiation of the letter of credit (LC), and credits your account immediately with proceeds if documents submitted comply with the terms and conditions.

Features:

  • Ability to obtain immediate funds upon presentation of necessary documents
  • As a means of financing for working capital requirements
  • High margin of advance is available for eligible customers
  • Compliance checking of documents is handled by experts under Maybank Group
  • Backed by a network of over 2,200 international offices and more than 900 correspondent banks worldwide.

OTHER BANKING SERVICES

Bank Guarantee (BG)
A guarantee by the bank on your behalf, ensuring that your liabilities
will be met.

Features:

  • Usually used to bid for tenders, as a contract requirement, or to guarantee payment obligation
  • Takes the form of a Financial Guarantee which ensures the fulfillment of financial obligation by you, and a Performance and Tender Bond, which ensures the performance of an act agreed between you and the beneficiary
  • Can be issued to a local party as well as a foreign party
  • Contains a specific validity period of coverage and claim period
  • Backed by a network of over 2,200 international offices and more than 900 correspondent banks worldwide
  • Types of Bank Guarantees include:

        •        Tender Guarantee / Bid Bond
         •        Performance Guarantee
         •        Advance Payment Guarantee
         •        Warranty Maintenance Guarantee
         •        Retention Guarantee.

Benefits:

  • Reflects on your capability to carry out payment obligations
  • Allows you to obtain favourable trade terms from the beneficiary if a BG is produced
  • No necessity to raise cash to meet the deposit requirements, and funds could be used to support working capital requirements
  • Allows you to have access to funds especially where a BG is issued for advance payment or for the release of retention funds under contracts.

Advising of Inward Documentary Credit (ILC)
The process of verifying the authenticity of a Letter of Credit that has been issued by a buyer's bank to the Advising Bank's customer (the seller).

Features:

  • Wide network of correspondent banks available if Maybank acts as the Advising Bank
  • Reduces the risk of fraud as the Advising Bank will verify the genuineness of the LC
  • Financing is available from the bank upon negotiation of the LC
  • Backed by a network of over 2,200 international offices and more than 900 correspondent banks worldwide.

Option Financing Facility (OFF)
A trade finance package offered to Exporters/Local Suppliers whose exports/local sales are against acceptable Letter of Credit (LC). Under OFF Package, exporters/local suppliers may be
accommodated with a combination of trade finance (TF) products for Bills Negotiation - FBEP/AP and DBEP/AP Bankers Acceptance (BA), Onshore Foreign Currency Loans (OFCL), Export Credit Refinancing (Post-shipment).

Features:

  • Exporters/local suppliers may avail themselves to any of the
  • Trade Finance products at any time to obtain immediate advance against their export/local sales bills
  • Exporters/local suppliers are not required to have any existing trade facility with Maybank to enjoy this package
  • Further enquiries can be made at any of our Trade Finance Centre or Business Centre.

Benefits:

  • Immediate usage of funds to meet business needs
  • Multiple choice of financing tools
  • Cost effective as exporters/local suppliers may opt for the cheapest source of financing
  • Compliance checking of documents is handled by experts in LCs.

Export Bills Negotiation (EBN)
A facility whereby the bank may agree to negotiate, purchase or discount compliant documents drawn under Letters of Credit (LC) acceptable to Maybank and credit your account immediately.

Benefits:

  • Immediate usage of funds to meet business needs
  • Minimizes exposure to exchange risk
  • Exporters/local suppliers are not required to have any existing trade facility with Maybank to enjoy this package.

Maybank Trade Pack
A trade financing package specially designed to suit your business aspirations for your working capital requirements and business expansion across the globe.

Eligibility

  • Private and public limited companies with a minimum paid-up capital of USD5,000
  • Established track record for the past 3 years
  • Satisfactory financial track record for the past 3 years (audited and/or management financial statements).

Features:

  • A choice of trade finance facilities as follows:
  • Letter of Credit
  • Trust Receipt
  • Shipping Guarantee
  • Bank Guarantee
  • Bills Purchased
  • Foreign Exchange Contract
  • Processing fees of 1% on the approved loan quantum
  • Subject to the Bank’s normal credit evaluation process.

Benefits:

  • No land/property pledged required
  • No commitment fee
  • No renewal fee
  • No administrative fee
  • Discount on processing fee
  • Up to 5 times the value of Fixed Deposit pledged
  • High Margin of Advance
  • Attractive interest rates and/or commission
  • Longer tenure of financing allowed for eligible customers.

Terms & conditions apply. Subject to change without prior notice.