Product Name

 

Invoice Financing

 

Product Description

 

Invoice Financing provides short term trade working capital financing for domestic buyer/importer or domestic seller/exporter that trades on open account terms.

 

Product Features

 

Loan Types With recourse short term trade working capital loans:
Import Invoice Financing(IIF) & Export Invoice Financing (EIF)
Loan Currency Malaysian Ringgit(MYR) or international currencies (FCY) that acceptable by the Bank
Financing Tenor Not exceed 90 days
Financing Interest

Respective MYR/FCY cost of funds + margin


How interest to be calculated?
For MYR bills
IIF/EIF loan amount x financing interest % / 365 x financing tenor


For FCY bills
IIF/EIF loan amount x financing interest % / 360 or 365 x financing tenor
Financing Interest Collection Method Financing interests is accrued over the duration of the IIF or EIF loan(s), collected upon settlement of IIF or EIF loan(s) prior or on the maturity date.
Loan Drawdown Document Commercial invoice(s), evidence of delivery(ies) & any other document(s) that requested by the Bank
Margin of Financing Not exceed 100% of the net invoiced value
Disposal of IIF/EIF Loan Drawdown Proceeds The Bank shall disburse the IIF/EIF loan proceeds only after verifying bona fide trade:
a. IIF loan proceeds should be paid to seller/exporter directly.
b. EIF loan proceeds should be credited into the customer’s account that held with the Bank.
Source of Repayment a. Relevant sales proceeds/export proceeds should be paid to the IIF/EIF customer’s account that held with the Bank for repayment of IIF/EIF loan(s) before/on maturity date; or
b. IIF/EIF customer’s own cash flow.

Customer Suitability

 

Invoice Financing is eligible for corporate customers who can fit into the Bank’s risk appetites and Invoice Financing is suitable for customers who need to (a) improve business cash flow, (b) promote business growth with minimal capital injection, (c) have better bargaining position & (d) have higher product flexibility.

 

Application Requirements

 

Customer is obliged to submit formal request together with documents that are required by the Bank for Invoice Financing application request.


Availability of the Invoice Financing facilities is subject to the Bank’s approval & terms and conditions apply.


Please contact 03-2387 8277 / 8235 for further inquiries.