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>Product Usage Features Benefits• Enables thecustomer to pay theseller promptly• Enables thecustomer to takedelivery of thegoods withoutpaying <strong>for</strong> itimmediately.• Able to easecashflow.A financing facilitythat enables acustomer to acceptdelivery of theirlocal/<strong>for</strong>eignpurchases prior topayment of the sightbills being made bythem.Trust Receipts (TR) Extends credit facility onbills drawn under thefinancial. institution’s ownLC. As such, customersdo not have to makeimmediate paymentson the LCs.Financing of a bonafide trade i.e. export.import or domestic tradetransaction.Banker’sAcceptance (BA)<strong>Financial</strong> <strong>Guide</strong> <strong>for</strong> <strong><strong>SME</strong>s</strong>• Provides cash flowbe<strong>for</strong>e proceeds <strong>for</strong>sale of goods oncredit can becollected, or tofinance purchasesof raw materials <strong>for</strong>production.• Can always be soldat the prevailingmarket rate shouldthe customer needimmediate funds.• Provides two-wayfinancing as BAfinancing isapplicable <strong>for</strong> salesand purchases.• A draft (Bill ofExchange) drawnby customers totheir order, payableon a specific futuradate and acceptedby the financialinstitution <strong>for</strong> thepurpose offinancing a bonafide trade.• The minimumamount of financingis RM50,000 andin multiples ofRM1,000 (bunchingis allowed).114114chapter 7-13 p79-181 Eng.indd 1148/15/11 5:03:00 PM
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