Letter of Credit-i
What is Letter of Credit-i?
Being a trading company or manufacturing outfit, purchases are normally on cash basis or with a limited credit line and period granted by the suppliers. A Letter of Credit would always be used as a payment term for overseas and local purchase.
Securing a bank facility for Letter of Credit is never easy. Even if a company is able to secure a facility, the terms can be unsettling. For a Letter of Credit, an upfront security deposit of up to 40% of the LC amount would normally be required. For any overdraft or term loan, a sinking fund would also be part of the terms and conditions which may take up the company’s remaining cash flow.
At IFSB, we provide professional assistance with regards to credit control, collection and sales accounting. Our tailored solutions can match the financial requirements, and we will work closely with you to meet specific financial goals or needs for your business.
What You Need to Know
- IFSB can issue Letter of Credits to domestic and overseas suppliers.
- We can facilitate supply contracts purchases.
- No sinking fund or upfront deposits needed.
- Your contracts act as collateral, and as low as 0.25% fee charged per month on the validity period.
With decades of experience serving companies in a range of industries and solutions, dealing with suppliers in all around the world, we have the know-how to be the right choice for overseas and domestic purchases. We offer trade line solutions tailored to meet your specific needs. Our rates are competitive with flexible terms, and initial approval process is fast.
Our team of experienced and dedicated finance specialists can advise and provide you with access to the best funding solutions for your business.
More About Factoring-i
Factoring financing is a great solution if you are seeking the financial stability that you need to improve your company’s cash flow.
Connect With Us
Receive written confirmation (Letter of Offer, Letter of Award, signed contract) from the government on award of project.
Identify supplier, who would then issue a Proforma Invoice.
Submit to Government
Prepare a signed copy of Arahan Pembayaran. The document should be signed by a government officer.
Submit to IFSB
Compile the following documents and submit to IFSB.
IFSB will issue the Letter of Credit to you within three working days*.
Fill up the form below to learn how a Letter of Credit from IFSB can help your business.