Export Bill Purchase/Discount

Export bill purchase/discount means that Bank of China (Malaysia) Berhad buys from the exporter the undue time draft accepted by banks or the undue debt claim honored by banks under the export L/C, or the undue debt claim guaranteed by banks under the documentary collection. If the issuing bank fails to pay at sight or at maturity, Bank of China (Malaysia) Berhad has the right of recourse from the exporter/customer. 

The product aims to meet the short-term financing requirement of exporters under the sight/usance L/C.

Acceleration of capital turnover -- Get the fund immediately, so that capital turnover can be accelerated and financial pressure can be eased.

Less financial expenses -- The customer can choose the funding currency in accordance with the interest rates of different currencies in Bank of China (Malaysia) Berhad, so as to minimize the financial expenses. 

Exporters have limited working capital, they have to develop business through rapid capital turnover. 

Exporters encounter temporary difficulty in capital turnover between receipt of acceptance/confirmation/guarantee of payment from foreign banks and collection. 

The enterprise is maintaining current account with our bank and having granted the trade facilities by the Bank of China (Malaysia) Berhad. 

Product Disclosure Sheet - Bills of Exchange Purchased/Authority to Purchase - Version No 2023-09

The exporter/beneficiary should provide the following documents:

a. Documentary Collection and/or Negotiation Form.

b. Full set of documents in accordance with the LC term and conditions.