A Trust Receipt (TR) is a short-term import financing facility between the bank and importer/buyer; in which the bank pays a supplier for goods, holds the legal title, but releases shipping documents to allow the goods to the importer/buyer to take possession of the goods for resale or use. Under this arrangement, the bank will retain the legal ownership of the goods until full repayment.

This facility enables businesses to Improve cash flow from the goods and settle the financing with the bank at an agreed future date.

Benefits

• Provides short-term financing to importers to pay to suppliers for the goods arrival
• Enables businesses to take possession of goods before full payment to the bank
• Improves working capital by allowing resale of goods while deferring payment
• Enhances cash flow and liquidity management
• Strengthens trading relationships through timely delivery and flexible settlement
• Supports business growth by bridging the gap between shipment arrival and customer payment
• Offers repayment flexibility aligned with business cycles

Product Features

• Financing provided against shipping documents or goods released under Letters of Credit or Documentary Collection
• Supports both sight and usance terms, subject to trade requirements
• Allows businesses to sell goods and generate revenue prior to repayment
• Secure handling of documents and goods under a trust arrangement
• Flexible settlement options in local or foreign currency

Eligibility & Conditions

• Available to eligible corporate and individual customers with an active bank account
• Subject to credit approval, approved facility limits, and compliance with the Bank’s policies
• Issuance and repayment governed by applicable trade finance regulations and Trust Receipt terms
• Fees, charges, and repayment schedules vary based on TR amount, tenor, and facility type
• All services are subject to the Bank’s prevailing terms, conditions, and regulatory requirements