Trade Financing

Trade Financing

Public Bank is the ideal partner to help you efficiently handle your trade transactions as well as address your financing needs. Our extensive network of correspondent bankers and experienced personnel will ensure that you will enjoy worldwide acceptance by the international business community.
 
We offer a wide range of solutions and services to meet all your trade financing needs.
 
LOCAL PURCHASES/ IMPORT SERVICES 
  • Letter of Credit (LC) 

Letters of Credit are issued by the bank to your suppliers as a form of guaranteed payment. The supplier will be able to collect the payment when all conditions of the LC are met, for example when the goods shipped and documents delivered to the bank.

Advantages of using Letters of Credit:
 
  • LC issued by Public Bank enjoys worldwide acceptance, giving you better negotiating powers, even when dealing with a supplier for the first time. 
  • Eases your cash flow without the need to pay in advance. 
  • Minimal charges. 
  • Minimal documentation required.
  • Trust Receipt (TR) 

A form of financing for your purchases, where we pay your suppliers 100% of the value of the goods, so that you can take delivery promptly and defer payment for an agreed period of time.
 
Advantages of using Trust Receipts:
 
  • Flexibility to settle early, partly or fully.
  • Financing for a pre-determined period that suits your needs. 
  • 100% financing Competitive rates, no commitment fee. 
  • Banker's Acceptance (BA) 

The bank provides financing for importers and local purchasers so you can take delivery of goods faster to meet market demands. 

Advantages of using Banker's Acceptance: 
 
  • You can combine multiple trade documents to make up the minimum financing amount of RM50 000. 
  • Low charges levied. You can still obtain financing for other use, even though you have already paid your supplier. 
  • Goods can be purchased without worrying about increasing capital outlay. 
  • Period and amount of financing tailored to your business needs. 
  • Foreign Currency Trade Loan (FCTL)

Provides financing in foreign currency for your foreign trade.
 
Advantages of using Foreign Currency Trade Loan: 
 
  • Competitive financing rate. 
  • Available in major foreign currencies. 
  • Flexible mode of financing. 
  • Shipping Guarantee (SG) 

Allows you to take delivery of your goods prior to arrival of original transport documents.

Advantages of using Shipping Guarantee:
 
  • Save on demurrage and warehousing charges. 
  • Low commision charges for SG issued under Letters of Credit. 
  • Banker's Guarantee (BG) 

When you submit a tender, or need a guarantee of payment to a supplier or a business partner, you can use a Banker's Guarantee as a viable alternative to cash deposits. 
 
Advantages of using Banker's Guarantee:
 
  • Low commission charges.
  • Free your funds to pursue other business opportunities. 
  • Widely accepted, giving recipients more confidence in your company's financial credibility. 
  • Documentary Collection 

Whether you're an importer or exporter, this is a value-added service that lets you channel all your trade documents through the bank. We can assist in making collections or convert your trade documentation into financing.

Advantages of using Documentary Collection:
 
  • Take advantage of our vast network of correspondent agents and branches to ensure prompt delivery of trade documents. 
  • We can provide avenues of financing should the need arise. 
  • Low service charges. 
  • We provide advisory services on ensuring that your documents are in compliance with your trade contract. 
  • Efficient and professional handling of all your trade documents. 
  • Acceptance Letter of Credit 

Provides financing in foreign currency to pay for your import goods. This allows you to take advantage of the low interest rates on certain foreign currencies, and thus increasing your profit margin.
 
Advantages of using Acceptance Letter of Credit:
 
  • Financing will be provided for a pre-determined period. This period is flexible to suit your needs. 
  • Enjoy more savings as we offer competitive interest rates and charge no commitment fee. 
  • 100% financing. 
  • Bilateral Payments Arrangement 

Introduced by Bank Negara Malaysia, this is a unique banking arrangement between our country and a number of developing countries to promote bilateral trade to non-traditional markets. It guarantees settlements of financial claims arising from exports and imports of goods drawn under Letters of Credit between Malaysia and these countries.
 
Advantages of using Bilateral Payments Arrangement:
 
  • Gives you more peace of mind and making it easier for you to do financial planning, knowing that you are guaranteed payment on your export goods. 
  • Payment protection on your exports on credit up to 360 days. 
  • Expands import and export opportunities by allowing you to tap into new, non-traditional foreign markets. 
  • The elimination of payment risks means you can enjoy better terms on your imports and exports. 
  • Enjoy favourable exchange rates on the U.S. Dollar under this arrangement. 
 
LOCAL SALES/ EXPORT SERVICES 
  • Banker's Acceptance (BA) 

The bank will pay you immediately in exchange for your invoices in a trade transaction. This gives you instant cash in hand for other business needs while the bank collects payment from your buyer at a later date.

Advantages of using Banker's Acceptance:
 
  • You can combine multiple trade documents to make up the minimum financing amount of RM50,000. 
  • Allows you to generate higher turnover by giving your buyers credit terms. Low charges levied. 
  • Foreign Currency Trade Loan (FCTL)

Provides financing in foreign currency for your foreign trade.

Advantages of using Foreign Currency Trade Loan: 
 
  • Competitive financing rate. 
  • Save on foreign exchange conversion as financing remains in foreign currency. 
  • Available in major foreign currencies. 
  • Flexible mode of financing. 
  • Banker's Guarantee (BG) 

When you submit a tender, or need a guarantee of payment to a supplier or a business partner, you can use a Banker's Guarantee as a viable alternative to cash deposits.

Advantages of using Banker's Guarantee:
 
  • Low commission charges. 
  • Free your funds to pursue other business opportunities. 
  • Widely accepted, giving recipients more confidence in your company's financial credibility. 
  • Bills of Exchange Purchased (BEP) 

This provides you with immediate funds upon presentation of export/sales documents with or without Letters of Credit. This gives you instant cash in hand for other business needs while the bank collects payment from your buyer at a later date. 
 
Advantages of using Bills of Exchange Purchased:
 
  • Low commission charges.
  • Up to 100% financing based on invoice amount. 
  • No minimum financing amount. 
  • Advance given based on presentation of documents of sale or export. 
  • Financing for both domestic and foreign sales with or without Letters of Credit. 
  • Export Credit Refinancing (ECR) 

Allows financing of production and exporting costs of local manufacturers and traders. This is intended to promote Malaysia's exports and international trade.

Advantages of using Export Credit Refinancing: 
 
  • Low interest rates. 
  • Maximum financing period of 120 days (pre-shipment) & 183 days (post-shipment). 
  • Minimum nominal value RM10K or up to 95% of export order or amount specified in the Certificate of Performance (pre-shipment) and 100% value of export bill (post-shipment). 
  • Financing available for pre-shipment and post-shipment transactions. 
  • Documentary Collection 

Whether you're an importer or exporter, this is a value-added service that lets you channel all your trade documents through the bank. We can assist in making collections or convert your trade documentation into financing.

Advantages of using Documentary Collection:
 
  • Take advantage of our vast network of correspondent agents and branches to ensure prompt delivery of trade documents. 
  • We can provide avenues of financing should the need arise. 
  • Low service charges. 
  • We provide advisory services on ensuring that your documents are in compliance with your trade contract. 
  • Efficient and professional handling of all your trade documents. 
  • Bilateral Payments Arrangement 

Introduced by Bank Negara Malaysia, this is a unique banking arrangement between our country and a number of developing countries to promote bilateral trade to non-traditional markets. It guarantees settlements of financial claims arising from exports and imports of goods drawn under Letters of Credit between Malaysia and these countries.

Advantages of using Bilateral Payments Arrangement:
 
  • Gives you more peace of mind and making it easier for you to do financial planning, knowing that you are guaranteed payment on your export goods. 
  • Payment protection on your exports on credit up to 360 days. 
  • Expands import and export opportunities by allowing you to tap into new, non-traditional foreign markets. 
  • The elimination of payment risks means you can enjoy better terms on your imports and exports. 
  • Enjoy favourable exchange rates on the U.S. Dollar under this arrangement. 
 

 

Cut-Off Time for Cross-Border Trade Settlement Services
The cut-off time for same day processing by our Trade Finance Centre of Cross-Border Trade Settlement transactions i.e. Import and Export Letter of Credit, Inward and Outward Bills for Collection is 4:00 p.m.