Bills Purchased Against Letter of Credit

For the Exporter

The exporter does not need to wait for payment from the issuing bank under Letter of Credit. RHB Bank allows you to finance the same bills by purchasing bills drawn under the Letter of Credit, and advance funds to you prior to receipt of funds from the issuing bank. By negotiating sight bills and discounting usance bills, the exporter will have added cash flow maneuverability. The advance requires RHB Bank to check your documents to ensure compliance against the Letter of Credit. After the advance, RHB Bank will forward the documents to the issuing bank for payment. RHB Bank can purchase domestic and foreign bills drawn under Letter of Credit.

Benefits

• Improved cash flow to fund working capital requirements
• Allows the exporter to pay their suppliers early and secure better pricing
• Allows the exporter to expand their business with the added funds