Features
- The customer sells the goods on credit. While waiting for the export/sale proceeds to be realized
- The Bank provides financing by purchasing the receivables/debt at a mutually agreed price and the proceeds will be credited to the customer’s account
- Minimum amount of financing RM50,000; bunching of documents to reach the minimum amount of RM50,000 is allowed for financing
- Minimum financing period is 21 days
- For exports financing maximum period is 365 days but should not exceed the credit term given by the seller to the buyer and the facility tenor
- To finance exports for usance period of more than six months, the approval of the controller of Foreign Exchange must be obtained
- For local sales the usance period not exceeding the remaining tenor of the credit extended to the buyer and should not exceed 365 days.
Document Required
The documents required for creating AB-i are:
- AB-i Draft
- AB-i Bai Al Dayn Contract Note
- Commercial Documents (Invoice and Transport Documents)
- Other supporting documents
