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Trust Receipt
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Working capital for importing raw materials/goods.
Import first, pay later.
Working capital for buying raw materials / goods for production or sale before repaying the bank on the agreed due date.
Note: The ownership rights to the goods produced shall belong to the bank until the credit has been fully repaid.
Thai baht or foreign currency.
Minimize foreign exchange risk
Loan Details
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Service detailsWorking capital to finance imports in Thai baht and foreign currencies, to purchase goods from abroad for production or sale | Interest / FeesAccording to the bank's regulations |
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Maximum amount of loanSubject to the bank’s approval | Types of loansMaximum loan term is 180 days |
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CollateralAccording to the bank's regulations |
How to Apply
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- Entrepreneurs who export their products overseas
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Frequently Asked Questions
What is a working capital?
Working capital is a short-term loan lent to a borrower by the bank. The borrower can use this loan amount in its day-to-day trading operations. Trust Receipt is a short-term loan granted in forms of export documents with trading terms for the borrower to use as a working capital for manufacturing or resale and repay the bank within the loan term as agreed.
What are the international terms of payment?
There are 4 payment terms as follows :
- Letter of Credit is a letter issued by the importer’s bank to exporter’s bank to serve as a guarantee for payments made by the issuing bank under specified conditions.
- Bill for Collection is the payment term that exporters submit a payment request with required export documents via the bank after export in order for the bank to collect payment from importer’s correspondent bank in their local countries.
- Open Account is the payment term that exporters shall export their products to importers before the payment which is subjective to terms & conditions agreed between both parties.
- Advance Payment is the payment term that trade partners agree to export products once the payment is received.
What is Trust Receipt (TR)? How many types are there?
Trust Receipt (TR) is a short-term loan (180 days) to be used as a working capital to import raw materials / goods to manufacture or resell. The borrower has to repay the bank later. There are 4 types of TR as follows :
- Trust Receipt under Letter of Credit*
- Trust Receipt under Bill for Collection
- Trust Receipt under Open Account
- Trust Receipt under Advance Payment
Note: In the case that you already have Letter of Credit term with the bank, you can request for a LC / TR issuance to make a purchase under conditions of the Letter of Credit.
Does it apply to all kinds of imported goods?
Trust Receipt can be used for importing raw materials / good except for capital goods. The loan term is up to 180 days.
