The TR is a method of financing whereby the Bank retains the legal title to the goods but relinquishes physical possession to the buyer / importer of the goods who acts as the trustee or bank agent. The buyer / importer will dispose of the goods and repay the Bank (amount owing plus interest) out of the proceeds of the sales on or before maturity of the TR.
TR is strictly for financing of working capital requirement and must not be used to finance purchase of fixed assets e.g.plant, machinery, etc.
The minimum period of financing is 7 days and the maximum period must not exceed the approved financing tenure by the bank.
The minimum financing amount is RM2,500.
Have more flexibility
Flexibility to settle any time at your own convenience (early settlement) but subject to the maturity date of TR.