Export Financing

(1)Pre-Shipment Financing

(2)Post-Shipment Financing

 

(1)Pre-Shipment Financing (Packing Loan)
Packing loan is pre-export financing scheme that allows you to access funds for financing your manufacturing processes or shipping of the goods against incoming LC. The Bank shall assess your performance and delivery risk.

FEATURES AND BENEFITS
Benefits to Exporter (Seller)

  • Support you with working capital required during manufacturing and shipping of the goods.
  • Seize more business opportunities by having enough financing to fulfill the orders.
  • Gain competitiveness by offering more attractive credit terms to your customers.

Process
Importer sends you LC through Issuing Bank.

  • SME Development Bank advises you of the incoming LC.
  • You apply for packing loan from SME Development Bank.
  • SME Development Bank credits your account up to 80% value of the LC.
  • You manufacture and ship the goods to the importer.
  • You present the shipping documents to SME Development Bank for negotiation basis.
  • SME Development Bank forwards the related shipping documents to importer through Issuing Bank.
  • Importer pays SME Development Bank via Issuing Bank.

RATES AND FEES (SUBJECT TO CHANGES)
Pre-arranged fees & charges

REQUIREMENTS

  • Packing Loan Application Form
  • Request Cover Letter with Company Letterhead
  • Sales contract
  • Incoming Commercial Letter of Credit (LC) acceptable to the bank
  • Commercial invoice
  • Export license issued by Department of Commerce (both original and copy)

 

 

 

 

Export Bill Purchase under Letter of Credit – Sight and Usance

Export bill purchase under LC is a short-term financing scheme for exporters. Receive advanced financing by selling the export documents at discount to SME Development Bank providing all the terms and conditions that comply with LC.

FEATURES AND BENEFITS
Role of SME Development Bank : Paying / Accepting / Negotiating / Deferred Payment / Presenting Bank
Tenor : Range from Sight to Usance of 180 days (maximum)
Benefits to Exporter (Seller)
Improve your business' cash flow by receiving payments before the buyer pays you.

Convert your receivable into cash immediately hence minimizing the risks.

Financing can be up to 50-80% of the documentary credit, subject to approved trade facility credit limit

Allow you to reinvest your revenue immediately.

Gain competitiveness by offering more attractive credit terms to your customers.

How does it work? (Process)
Importer sends you (exporter) LC through his bank.

SME Dvelopment Bank advises you of the incoming LC.

You ship the goods to the buyer according to strict LC terms and conditions.

You submit export bill application to SME Development Bank together with shipping documents that fully complied with LC terms and conditions.

SME Development Bank purchases your LC bills and credits your account with recourse basis.

Issuing bank pays SME Development Bank within 5 business days from receipt of complying documents at the Sight basis or maturity date.

RATES AND FEES (SUBJECT TO CHANGES)
Pre-arranged fees & charges

REQUIREMENTS
Letter of Credit (Export Documents Processing) Application Form

  • Request Cover Letter with Company Letterhead
  • Sales contract
  • Commercial invoice
  • Shipping documents (Bill of Lading / Air waybill / Packing List)
  • Export Declaration From
  • Importer pays SME Development Bank via Issuing Bank.

RATES AND FEES (SUBJECT TO CHANGES)
Pre-arranged fees & charges

REQUIREMENTS
Packing Loan Application Form

  • Request Cover Letter with Company Letterhead
  • Sales contract
  • Incoming Commercial Letter of Credit (LC) acceptable to the bank
  • Commercial invoice
  • Export license issued by Department of Commerce (both original and copy)

Export Bill Collection – DP/DA Discounting

Export bill purchase under documentary collection is a short-term financing scheme for exporters with full recourse basis. Receive advanced financing at the face value after selling the export documents at discount to SME Development Bank.

FEATURES AND BENEFITS
Role of SME Development Bank : Financing Bank
Tenor : As per terms and conditions stated in DP and DA (Documents against Payments and Documents against Acceptance)
Benefits to Exporter (Seller)
Improve your business' cash flow by receiving payments before your buyer pays you.

Convert your receivable into cash immediately hence minimizing the risks.

Financing can be up to 50-80% of the documentary collection, subject to approved trade facility credit limit

Allow you to reinvest your revenue immediately.

Your trade documents are released only if the buyer pays or accepts bills of exchange.

Process
For Export Bill Purchase – DP (Documents against Payments)

  • You (Exporter) sign sales contract agreement with your buyer (importer).
  • You ship the goods to the importer.
  • You submit DP purchase application to SME Development Bank with the shipping documents.
  • SME Development Bank purchases the DP and credits your account with recourse.
  • SME Development Bank sends shipping documents to the Collecting Bank.
  • Collecting Bank releases the shipping documents to the importer, upon sight payment.
  • Collecting Bank makes payment to SME Development Bank.

 

For Export Bill Purchase – DA (Documents against Acceptance)

  • You (Exporter) sign sales contract agreement with your buyer (importer).
  • You ship the goods to the importer.
  • You submit draft and documents to SME Development Bank under DA terms.
  • SME Development Bank purchases the DA and credits your account with recourse.
  • SME Development Bank sends documents to the Collecting Bank.
  • Collecting Bank delivers shipping documents to the importer.
  • Collecting Bank informs SME Development Bank of draft acceptance and maturity date.
  • The buyer makes payment to SME Development Bank through Collecting Bank on maturity.

RATES AND FEES (SUBJECT TO CHANGES)
Pre-arranged fees & charges