Bills of Exchange Purchased-i (BEP-i)

Bills of Exchange Purchased-i (BEP-i) is a generic term used to denote Bills of Exchange Purchased / discounted by the Bank under an export/domestic collection or an export/domestic Letter of Credit negotiation. It is a credit facility made available to an exporter or seller/beneficiary of an export/local LC as a means to provide the working capital needed for his/her on-going business.


Foreign BEP-i

a)   Foreign BEP-i LC

This facility is made available to the beneficiary (exporter) of a sight (purchased) or usance (discounted) Letter of Credit, through the provision of advances to finance his/her international trade and working capital requirements. To access this facility, the beneficiary (exporter) must be able to provide drafts/documents that are drawn in compliance with the terms and conditions of the related Letter of Credit to secure an immediate cash advance from the Bank through a negotiation, purchase or discount of the drafts/documents.

The Bill of Exchange and the supporting LC documents will be negotiated and purchased/discounted by the Bank and the proceeds received from the drawee/importer/Issuing Bank will be used to liquidate the outstanding Foreign BEP-i LC financing.


b)   Foreign BEP-i without LC

This facility is made available to any exporter (seller) / customer to finance his/her international trade and working capital requirements through the purchase/discount of his/her sight or usance export bills. Upon purchase or discount of the bill of exchange drawn by the exporter on the overseas buyer, the drafts/documents will be handled by the Bank under documentary collection basis. Proceeds of the documentary collection will be applied to liquidate the bill purchase outstanding financing.


Domestic BEP-i

a)   Domestic BEP-i LC

The application of this facility is similar to Foreign BEP-i LC as above except that it is made available to the beneficiary (seller) for financing his/her domestic trade. To qualify for Domestic BEP-i LC financing, it must be an inland bill and supported by a Local Letter of Credit. The Bill of Exchange and the supporting LC documents will be negotiated and purchased / discounted by the Bank and the proceeds received from the drawee/importer/Issuing Bank will be used to liquidate the outstanding Domestic BEP-i LC financing.


b)   Domestic BEP-i without LC

The application of this facility is similar to Foreign BEP-i without LC as above except that it is made available to seller for financing his/her domestic trade. To qualify for Domestic BEP-i without LC financing, it must be an inland bill. The Bill of Exchange and the supporting documents will be processed by the Bank under documentary collection basis and its proceeds will be utilised to liquidate the bill purchase outstanding financing.


Benefits & Features

Benefits of using our products:

  • Natural hedging of foreign currency exchange as proceeds are received upfront
  • Convenient way of collecting sales/export proceeds

Cut-off time

Application received by 1:00pm* will be processed on the same day.


* Subject to all terms and conditions complied with


Fees & Charges

Subject

Charges

Rate / Amount

1.   As per transaction Commission Domestic:

0.1% flat on the bill amount with:

Min : RM50.00

Max : RM500.00


Foreign:

0.1% flat on the bill amount with:

Min : RM50.00

Max : RM100.00

Agent charges

Note: To cover any shortfall receive from Issuing Bank

Domestic : N/A

Foreign : RM2,000.00 flat rate

Local Postage Actual direct cost incurred
Courier Actual direct cost incurred
Foreign Courier Actual direct cost incurred
SWIFT

Malaysia (Domestic): RM25.00

Outside (Foreign): RM50.00

RENTAS Domestic: RM2.00 per RENTAS application
Interbank Giro Domestic: RM0.10 per IBG application
Banker’s Cheque

Domestic:

Stamp Duty RM0.15

Processing Fee RM0.50

2.   Contract Note BB 48 Stamp duty RM10.00
3.   Overdue Bills Ta’widh

As per Ta’widh formula:

= FV x r x t / 36500

Where,

FV = outstanding overdue amount (outstanding amount = cost + profit overdue)

r = IIMM rate

t = no of days due from the original maturity date

4.   Others
Fax Out of pocket expenses Actual direct cost Incurred
Photocopy Out of pocket expenses Actual direct cost Incurred
Other direct cost Out of pocket expenses Actual direct cost Incurred