Accepted Bills-i (AB-i) – Import/Purchase

AB-i (Import/Purchase) is a facility granted to BMMB client (buyer) to finance their purchase of trading goods which include raw materials, semi-finished and finished goods. BMMB will enter into Murabahah contract (cost-plus profit) with the client. Murabahah is a “cost-plus profit” sale contract. It is a facility granted to clients for financing their short term working capital requirement by way of lump sum deferred payment cost plus profit.

 

Benefits

  • Advance made by the BMMB on behalf of its client (buyer) to pay the seller
  • Client pays the BMMB on deferred payment term
  • Competitive rate
  • Immediate payment to seller (documents received in order before cut-off time)
Features
  • BMMB appoints the client as the purchasing agent for BMMB
  • Client then purchases the required goods from the seller on behalf of BMMB
  • BMMB would then pay the seller and sell the goods to the client on a deferred term at a price inclusive of a profit margin.
  • Upon maturity of the Murabahah financing, the client shall pay BMMB the cost of goods plus BMMB’s profit margin.
  • The sale of goods by BMMB to the client on deferred payment term constitutes the creation of debt. The debt is securitized in the form of bills of exchange drawn by BMMB on and accepted by the client for the full amount of BMMB’s selling price payable at maturity
  • Minimum amount for financing is RM50,000.00. Bunching of documents in multiple RM1,000.00 to reach the minimum amount of RM50,000 is allowed for financing
  • Financing tenor 365 days less the period between the date of the earliest supporting document and the date of drawing the AB-i. Transaction documented more than 180 days before the drawing date should be declined
  • Minimum financing period is 21 days
Document Required

The documents required for creating AB-I Purchase are:

  • AB-i Draft
  • AB-i Murabahah Contract Note
  • DC Murabahah Contract Note (for financing under OLC-i)
  • Letter of Hypothecation (for financing under OLC-i)
  • Al-Murabahah Working Capital Financing Letter
  • Commercial Documents (Invoice and Transport Document)
  • Any receipt or other documentary evidence of payment in the case where Purchaser has already made payment to Supplier prior to the creation of the AB-i (for Reimbursement transactions)
  • Other supporting documents
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