Overdraft facility

A form of short-term credit facility by which a customer may be allowed to draw beyond his or her current account up to a prescribed limit. The facility is usually used to bridge short-term working capital constraints arising in business between receipt of funds and disbursement of funds.

Merchandise loan

 A short-term credit facility provided against physical pledge of merchandise goods or documentary evidence (letter of credit, export documents, warehouse receipt, etc.) as collateral for the loan.

Term loans

Credit facilities with structured repayment to be effected within a certain period of time. Repayments of a term loan shall be in line with the cash flow programme of the customer and nature of business. Term loans can be short-term, medium-term or long-term and their repayment can be monthly, quarterly, semi-annually, annually or at lump sum payment.

Construction machinery loan

Loans extended in the form of term loan for the purchase of construction machinery

Letter of credit facilities

A credit product extended to importers, upon payment of a certain percentage of the value of the letter of credit (L/C). The facility can be either for one-time or revolving for a specified period of time (usually one year).

Pre-shipment export credit facility

 A facility extended for expenses until the time of shipment for purposes including the purchase of raw materials, processing, warehousing, packing and transporting the goods.

Revolving export credit facility

An advance extended to exporters upon presentation of acceptable export documents, except a bill of lading.

Advance on export bills or post-shipment export credit

A credit facility extended to exporters, upon presentation of all relevant export documents. Utilised to finance the working capital needed between the shipment of goods and the realisation of proceeds.

Advance on import bills

A provisional account opened to record value of letter of credit (L/C) documents received less margin paid until such time that the importer settles the bill and collects documents to clear the goods from customs or port.

Guarantee facilities

Guarantee products are contingent liabilities which include all types of guarantees, such as bid bond guarantee, performance bond guarantee, advance payment guarantee, suppliers credit guarantee, custom bond guarantee, and retention payment guarantee.