Islamic Trade Finance

Imagine a trading environment where you can be sure of timely payments from your buyers and minimise concerns about paying your suppliers. Think how much easier your business would be if your domestic trade ran smoothly, your exports were processed quickly and accurately, and your imports were cleared efficiently on favourable terms. Not to mention doing all this without foregoing the essence of the Islamic values. Our Islamic Trade Finance products offer you precisely these benefits.

Solutions:

Letter Of Credit-i (LC-i)

A written undertaking by Standard Chartered Saadiq Berhad to make payment on your behalf at a determinable date in the future. Based on the Islamic concept of Wakalah, the bank is appointed to act as an agent on your behalf.

Alternatively, LC-i is also available under the concept of Murabahah where you will be appointed as an agent to purchase on behalf of the bank. Upon receipt of the shipping documents, you will submit offer to purchase goods from the bank at cost plus profit basis.


Bank Guarantee-i (BG-i)

An undertaking by the bank to pay the beneficiary an agreed sum if our customer fails or defaults in fulfilling their obligations under the terms and conditions of a contract or agreement. Based on the Islamic concept of Kafalah, we offer a contract of guarantee or surety to discharge your liability in the case of default.


Shipping Guarantee-i (SG-i)

A Shipping Guarantee is an indemnity given by you and countersigned by the bank, to a shipping company or its agent to allow the shipping company to release the merchandise to the consignee named in the Bill of Lading without the presentation of the original. Based on the Islamic concept of Kafalah, we offer a contract of guarantee or surety to discharge your liability in the case of default.


Import Finance-i (IF-i)

This product provides you the working capital to finance the purchase/ importation of goods and raw materials, etc. for your business operations. Based on the Islamic concept of Murabahah, you will be appointed as an agent to purchase goods on behalf of the bank. Upon receipt of the shipping documents, you will submit offer to purchase goods from the bank. The bank sells them on to you on deferred terms at an agreed selling price that comprises the bank's purchase price and profit margin. The bank pays the cost price of goods direct to the supplier and you buy them from us on a lump sum basis at an agreed date in the future.


Local Bills Discounting (LBD-i)

This product provides you with working capital by allowing the bank to purchase your debt through discounting. The proceeds from the sale serve as working capital to finance your sales/exports. The product is based on the Islamic concept of Bai'Dayn, whereby this is a sale of debt arising from a trade transaction. Debt created from the transaction is evidenced by a bill of exchange drawn by the seller and accepted by the buyer to mature on determinable future date.


Accepted Bills-i (AB-i) (Purchase/ Sale)

Purchase – With this facility, we finance the purchase/importation of goods, raw material and machinery etc. for your business operations.

Sale – We purchase your debt by discounting your right to the debt arising out of usance export documents with recourse to the customer.

Based on the Islamic concept of Murabahah for purchase and Bai'al Dayn for sale. Accepted bills can be traded by us in the secondary market.

 

Perdankan Islam | Standard Chartered Saadiq