Import Financing

• Corporate
• International Banking
• Trade Finance

Import Bill Collection (DP/DA Discounting)

The D/P transaction utilizes a sight draft and payment is on demand. D/P is an arrangement under which an exporter instructs the presenting bank to hand over shipping and title documents to the importer only if the importer fully pays the accompanying bill of exchange / draft (if needed).

D/A is an arrangement under which an export instructs the presenting bank to hand over shipping and title documents to the importer only if the importer accept a time draft.

FEATURES AND BENEFITS

• Role of SME Development Bank: Financing Bank
• Tenor: As per terms and conditions stated in DP and DA

Benefits to Importer (Buyer)

• Do not need to effect payment immediately when documents are presented under documentary collection
• Financing can be up to 100% of the documentary collection, subject to approved trade facility credit limit
• Enjoy credit terms pre-approved by the Bank.
• Buyer’s working capital or cash flow is not tied up and can be deployed for other business purposes.

Process

• For Import Bill Purchase – DP
• You (Importer) sign sales contract agreement with your seller (exporter).
• Exporter ships the goods to you and submits the shipping documents to Remitting Bank.
• Remitting Bank sends shipping documents along with DP collection bill to you via SME Development Bank (Collecting Bank).
• You submit DP application to SME Development Bank.
• SME Development Bank purchases the DP and makes payment to the seller on your behalf.
• You can collect the trade documents from SME Development Bank.
• You will employ Trust Receipt Financing (you will need to have a pre-arranged Trade Facility) and pay back to SME Development Bank when the loan term is due.

For Import Bill Purchase – DA

• You (Importer) sign sales contract agreement with your seller (exporter).
• Exporter ships the goods to you and submits the shipping documents to Remitting Bank.
• Remitting bank sends shipping documents along with DA collection bill to you via SME Development Bank (Collecting Bank).
• You submit DA application to SME Development Bank.
• SME Development Bank purchases the DA and informs Remitting Bank of draft acceptance and maturity date.
• You can collect the trade documents from SME Development Bank.
• SME Development Bank will make payment to seller via Remitting Bank on maturity.
• You will make payment to SME Development Bank when the loan term is due, or employ Trust Receipt Financing (you will need to have a pre-arranged Trade Facility).

RATES AND FEES (SUBJECT TO CHANGES)

• Pre-arranged fees & charges