Financial Guide for SMEs - SME Corporation Malaysia
Financial Guide for SMEs - SME Corporation Malaysia
Financial Guide for SMEs - SME Corporation Malaysia
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<strong>Financial</strong> <strong>Guide</strong> <strong>for</strong> <strong><strong>SME</strong>s</strong>International Trade Financing FacilitiesProduct Usage Features Benefits<strong>Financial</strong> <strong>Guide</strong> <strong>for</strong> <strong><strong>SME</strong>s</strong>• Can assurepayment is madeto the beneficiary.• Able to obtain alower purchaseprice of the goodsand longerpayment terms, asthe LC provides anindication ofpaymentassurance, from thesellers’ perspective.• Documentspresented will beexamined by tradefinancing specialists.• Do not have tocommunicate withthe <strong>for</strong>eign seller sooften since thewhole transactionwill be routedthrough andhandled by thefinancial institution.A written undertakingby a financialinstitution to pay aseller a given amountof money subject tothe followingconditions:• On presentation ofspecified;documents as setout in the termsand conditions ofthe LC; and• Within a specifiedtime limit• At a specified place.For import or localpurchases of goods,materials or equipment.Letter ofCredit (LC) orDocumentary Credit (DC)113113chapter 7-13 p79-181 Eng.indd 1138/15/11 5:03:00 PM
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