Maybank

To the buyer / applicant:

• Ability to stipulate the type of documents required as per terms agreed upon sales contract
• Obtain financing to pay the beneficiary
• Fulfill sales contract requirement and maintain good status
• Ability to negotiate favorable terms from the seller
• Issued under UCP 600 which is the internationally recognised rules governing LC-i operations
• Documents presented will be examined by experienced banking personnel
• Payment made upon receipt of compliant documents
• Minimises language barriers with the foreign seller as the whole transaction will be routed through and handled by the bank

To the seller / beneficiary

• Guaranteed payment upon presentation of compliant documents
• Option to have the bank to confirm the LC-i as an additional security
• Ability to request pre-shipment financing from the bank to purchase or process the goods before shipment
• Option to request the bank to transfer the LC-i to the actual supplier, i.e. trading companies
• Ability to reduce exchange risk
• Ability to reduce or eliminate commercial risks as payment is assured by the bank
• LC-i is issued under UCP 600 which is the internationally recognized rules governing LC-i operations

LC-i (without financing)

• Customer nominates the Bank to act on his behalf
• Customer placed 100% cash deposit with the Bank for the LC-i value
• Undertaking of payment by the Bank
• There is no financing from the Bank
• The LC-i is available on sight basis

LC-i (with Murabahah financing)

• Customer nominates the bank to act on his behalf to issue the LC-i
• Undertaking of payment by the Bank
• The LC-i is available on sight or usance basis
• The customer will arrange for a Murabahah financing with the Bank for the LC-i value