Beginner's Guide to Exporting. 4th Edition.

2 0 Beginner’s Guide To Exporting SOURCING FOR EXPORT FINANCING CHAPTER 5 Insurance Facilities To Support Trade Transaction: Facility Description Trade Credit Insurance Facility (Available from EXIM Bank) Provides an umbrella cover for exporters who make regular exports to overseas importers on credit up to 180 days. The policy also covers export directly from the supplier’s countries to their destination without passing through Malaysia (third country export) Specific Policy (Available from EXIM Bank only) Specific policy is a form of credit insurance that insures Malaysian exporters who undertake contracts for export of capital goods, or turnkey projects, or construction works, or rendering service abroad, against the risks of non- payment by the overseas buyer. Bank Letter of Credit Policy (BLCP) (Available from participating commercial banks) BLCP covers participating banks that negotiates ILC issued by foreign banks against the foreign issuing bank’s failure to reimburse payment to the beneficiaries (i.e Malaysian exporters) under ILC. Multi Currency Trade Financing Scheme (MCTF) (Available from participating financial institution) MCTF is a facility provided by Malaysian Participating financial institution to the SME exporters to finance the production of goods and / or rendering of services against Irrevocable Letter of Credit (ILCs) issued by the overseas Issuing Banks. Pre-Shipment • Purchasing and/or manufacturing and/or processing and/or packing of goods • Rendering of services Post-Shipment • Facilitating exports by way of discounting/purchasing/ negotiation of export Letters of Credit, Stand-by Letters of Credit or such other instrument • Rendering of services Indirect Exporters Financing Scheme (IEFS) (Available from participating financial institution) IEFS is a non recourse financing scheme for SMEs who are Indirect Exporters (Sellers), whereby participating financial institution discount commercial documents arising from the supply of goods and/or services to Direct Exporters (Buyers) with coverage provided by EXIM Bank to the participating financial institution.