Import Financing

Import Bill Collection (DP/DA Discounting)

The D/P transaction utilizes a sight draft and payment is on demand. D/P is an arrangement under which an exporter instructs the presenting bank to hand over shipping and title documents to the importer only if the importer fully pays the accompanying bill of exchange / draft (if needed).

D/A is an arrangement under which an export instructs the presenting bank to hand over shipping and title documents to the importer only if the importer accept a time draft.

 
FEATURES AND BENEFITS
  • Role of SME Development Bank: Financing Bank
  • Tenor: As per terms and conditions stated in DP and DA
 
Benefits to Importer (Buyer)
  • Do not need to effect payment immediately when documents are presented under documentary collection
  • Financing can be up to 100% of the documentary collection, subject to approved trade facility credit limit
  • Enjoy credit terms pre-approved by the Bank.
  • Buyer’s working capital or cash flow is not tied up and can be deployed for other business purposes.
 
Process
  • For Import Bill Purchase – DP
  • You (Importer) sign sales contract agreement with your seller (exporter).
  • Exporter ships the goods to you and submits the shipping documents to Remitting Bank.
  • Remitting Bank sends shipping documents along with DP collection bill to you via SME Development Bank (Collecting Bank).
  • You submit DP application to SME Development Bank.
  • SME Development Bank purchases the DP and makes payment to the seller on your behalf.
  • You can collect the trade documents from SME Development Bank.
  • You will employ Trust Receipt Financing (you will need to have a pre-arranged Trade Facility) and pay back to SME Development Bank when the loan term is due.
 
For Import Bill Purchase – DA
  • You (Importer) sign sales contract agreement with your seller (exporter).
  • Exporter ships the goods to you and submits the shipping documents to Remitting Bank.
  • Remitting bank sends shipping documents along with DA collection bill to you via SME Development Bank (Collecting Bank).
  • You submit DA application to SME Development Bank.
  • SME Development Bank purchases the DA and informs Remitting Bank of draft acceptance and maturity date.
  • You can collect the trade documents from SME Development Bank.
  • SME Development Bank will make payment to seller via Remitting Bank on maturity.
  • You will make payment to SME Development Bank when the loan term is due, or employ Trust Receipt Financing (you will need to have a pre-arranged Trade Facility).
 
RATES AND FEES (SUBJECT TO CHANGES)
  • Pre-arranged fees & charges