Avalising (Co-acceptance)

This is an undertaking given by the Bank to honour, on a customer’s behalf, payments of Bills of Exchange. This service is applicable to both domestic and international trade. The facility is normally used where the seller’s only concern is the buyer’s risk

Benefits


  1. Payment is guaranteed by a bank
  2. Drawee can obtain or Credit & Discount on availed bills

Key Features


  1. The Bank charges a fee and a commission.
  2. The product has a maximum tenor of 180 days.
  3. The facility needs to be fully secured by asset collateral

 


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