​​​​​​​​​​​​​​​Working capital for importing raw materials/goods.

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.

There are 4 payment terms as follows :

1. 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.
2. 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.
3. 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.
4. Advance Payment is the payment term that trade partners agree to export products once the payment is received.

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 T​R as follows :

1. Trust Receipt under Letter of Credit*
2. Trust Receipt under Bill for Collection
3. Trust Receipt under Open Account
4. Trust Receipt under Advance Payment

Trust Receipt can be used for importing raw materials / good except for capital goods. The loan term is up to 180 days.