A Letter of Credit ("LC") is also known as Documentary Credit, and it constitutes an irrevocable and definite undertaking of the Issuing Bank to honor a complying presentation to facilitate trade transaction. It can be issued on Sight or Usance basis, depending on instruction given by the LC Applicant.  The Issuing Bank or Confirming Bank (if any) assures payment to the seller (Beneficiary) as long as they present documents which comply with the terms and conditions of the issued LC.

Key benefit is discrepancies in the documentation are minimised as documents are being checked by the bank.

Bankers Acceptance ("BA") is a usance bill of exchange drawn by the customer (Drawer) to his order and accepted by his bank (accepting bank) and payable on a specified future date. 
BA can be used to finance import, local purchase, export and local sales of goods. BA is denominated in Ringgit (RM) drawn on and accepted by a bank in Malaysia.

Trust Receipt ("TR") is an agreement between the bank and its customer (the importer/buyer) which is used to secure an advance. With this, the bank releases documents and goods without releasing the title to the goods.  TR as a financing product enables the customer to settle the payment obligation for the imports/purchases; to take possession of the goods for a predetermined tenure while payment will be made at maturity date; and to sell the goods or in the case of raw materials, to turn them into finished products for sale/export.

Key benefits are interest is payable on maturity, financing for full invoice amount is allowed and early or partial payment is allowed.
 

Bank Guarantee ("BG") is a document whereby the bank as guarantor undertakes to pay an agreed sum if the customer fails or defaults in fulfilling his obligation under the terms and conditions of the guarantee.  BGs by their nature are separate transactions from the contracts or tenders on which they may be based and the bank as guarantor is not bound by such contracts despite the inclusion of a reference in the BG.

Shipping Guarantee ("SG") is an indemnity document issued by the bank addressed to the shipping company on the instruction of the importer to take delivery of goods from the shipping company or its agent in the absence of the original bill of lading.  The bank undertakes to indemnify the shipping company or its agent against all consequences and/or liabilities relating to the delivery of the merchandise under this guarantee.

Key benefits are goods can be cleared and obtained in a timely manner pending arrival of shipping documents and the importer is able to minimise potential excessive storage or demurrage charges.

A Standby Letter of Credit ("SBLC") is used when guarantees are not acceptable for overseas or cross border arrangements to secure payment / facilities / performances.

Import Bills for Collection ("IBC") is a trade service provided by the bank, as a Collecting/Presenting Bank to handle and inform customer’s incoming shipping documents from their supplier. The intermediary service facilitates trade settlement on terms agreed between the customer and their supplier.   The Collecting/Presenting Bank will carry out the instructions against specific instructions such as:

• Delivering documents against Payment (D/P) i.e. Sight - whereby the Collecting/Presenting Bank will only release the documents to the Buyer upon payment is received.
• Delivering documents against Acceptance (D/A) i.e. Usance - whereby the Collecting/Presenting Bank will release the documents to the Buyer upon acceptance of the Seller's bills of exchange.
   

Foreign/Domestic Bills Purchased/Discounted is a form of short-term export/sales financing in which the exporter or seller obtains from his bank upon presentation of export documents drawn under documentary collection. By purchasing and advancing the customer, the bank becomes the holder of the bill in due course and shall only be repaid upon receipt of proceeds or reimbursement from the collecting bank.  When the bank purchases a bill, it will advance money to the customer on presentation of a set of export or sales documents, and interest will be charged on the amount advanced until the bank receives reimbursement. The advance is given against customer’s credit line.

Export Letter of Credit Advising.  As an Advising Bank, the bank will receive customer’s incoming Letter of Credit from the customer’s supplier’s bank through the bank’s local or overseas Correspondent Banks.  The Letter of Credit can be in the form of SWIFT, Mail or Telex. Once the authenticity of the Letter of Credit is verified, the bank will advise the Letter of Credit to the Exporter (Beneficiary) or their banker’s (the Second Advising Bank) accordingly.  At the request of the Issuing Bank or Beneficiary’s and by arrangement, the bank may add confirmation whereas the bank’s liability as a Confirming Bank is similar to the Issuing Bank.  However, such confirmation will be solely at the bank’s discretion, and the acceptability of the terms and conditions of the Letter of Credit will be at the time the confirmation is added.

Export Bills for Collection ("EBC") is a trade service provided by the bank, as a Remitting Bank to send out the customer’s outgoing shipping documents to their buyer. The intermediary service facilitates trade settlement on terms agreed between the customer and their buyer. The handling by the Remitting Bank of the shipping documents is based on customer’s instructions in order to obtain payment or acceptance or based on other pre-determined terms and conditions.