Introduction

Customer (exporter) has contracted to sell goods to buyer (importer) on credit terms. Under this contract, the importer has requested its banker to issue a documentary credit to the exporter and the tenor of the credit is payable at a future determinable date (eg. 30 days after B/L date or 60 days after sight). Exporter presents documents under the documentary credit to us for processing and dispatch to the issuing bank and subsequently, an acceptance is received from the issuing bank confirming the maturity date.

If exporter is in need of funds before the date of maturity, it may arrange with us for discounting of the bill and upon management approval, the funds shall be credited into its account with us.

For documents under collection and accepted by drawee to mature on a determinable future date and if payment under this acceptance is guaranteed by the collecting bank, we may also consider provide discounting for this accepted bill.

Export discounting is provided with full recourse to the exporter in case of non-payment by the issuing bank or the bank providing the guarantee.

Benefits to exporter

1. Improve liquidity and cash flow position.

2. Faster trade turnover facilitating business expansion.

Application requirements

1. Exporter must maintain a banking account with us.

2. The export bill under the documentary credit must have already been accepted by the issuing bank or in case of collection, accepted by the importer (drawee) with payment guarantee given by the collecting bank.

3. The issuing bank or the guaranteeing bank must be a reputable international bank with bank line available from us.