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Bai Bithaman Aajil Naqad Financing (Deferred Payment Sale)

This is a short-term revolving financing in the form of an overdraft facility which may be utilized over the period of the financing. The purpose of the financing is to provide an additional working capital (e.g. to payoverhead expenses) and as standby fund for operation. The amount of financing will depend on the cash flow of the company, the timing of receipts and payments, seasonal trends in the sales and so on.

Generally the maximum financing period is 12 months and is renewable upon maturity subject to satisfactory performance of the account. The profit charged for the financing shall be calculated on a daily utilization basis and the rate is subject to the Bank’s prevailing risk mitigation and pricing guidelines. Repayment shall be made by means of monthly profits payment and lump sum settlement of principal at the end of the financing tenor.

We offer three types of Term Financing.

Bai Bithaman Aajil Demand Financing
A short-term one-off lump sum financing which may be granted against confirmed or expected lump sum receivables or against contract/project awarded by Government or Government Related Companies or any other pay-master acceptable to the Bank. The financing may be used for start-up/mobilization expenses for awarded project/contract or as additional capital for business. The period of financing shall be based on the expected receipts of payment with a maximum period of 12 months. The profit charged for the financing shall be calculated on a daily basis and the rate is subject to the Bank’s prevailing risk mitigation and pricing guidelines. Repayment shall be made by means of monthly profits payment and lump sum settlement of principal at the end of the financing tenor or upon receipt of payment from pay-master.

Bai Bithaman Aajil Term Financing
This financing may be granted for short, medium or long term period depending on the company's requirement and capacity to pay. The financing offers funding for acquisition of business assets (e.g. equipment, machineries & commercial property), purchase of stocks, minor renovation works, refinancing of assets and to facilitate other business requirements. Generally the financing period range between 12 months to a maximum of 84 months.

The profit charged for the financing shall be calculated based on a monthly reducing balance and the rate is subject to the Bank’s prevailing risk mitigation and pricing guidelines. Repayment shall be in the form of equal monthly installments made throughout the financing tenor.

Bai Bithaman Aajil Development Financing
This is a long term financing for the purpose of funding the construction cost of a development project either owned or managed by the company. The financing will be disbursed on a draw-down basis made against an agreed progress claims/payments schedule and certified by architect or quantity surveyor or consultant. The financing period will be depending on the nature of the project and repayment capability of the company. The Bank may consider granting a maximum repayment period of 120 months. The profit charged for the financing shall be calculated based on a monthly reducing balance and the rate is subject to the Bank's prevailing risk mitigation and pricing guidelines. Repayment shall be made in the form of equal monthly installments throughout the financing tenor.

Bai Bithaman Aajil Demand Financing
This is a revolving short-term financing given especially to finance project/contract awarded by Government or Government Related Companies or any other pay-master acceptable to the Bank. This financing provides standby fund for company to pay overhead expenses, operation expenses and the like while awaiting payment.

Availment of the financing is on a draw-down basis made against certified/confirmed claims or receivables and the tenor shall be based on the expected timing of receipt of payment. The amount of draw-down shall be based on a pre-agreed percentage (up to maximum of 80% of claims or receivables amount). The period of financing is normally adjusted to suit the duration of project/contract with maximum of period of 12 months. The financing may be renewed upon expiry subject to satisfactory performance of the account.

The profit charged for the financing shall be calculated on a daily basis based on outstanding utilized balance and the rate is subject to the Bank’s prevailing risk mitigation and pricing guidelines.

Repayment shall be made by means of monthly profits payment and lump sum settlement of principal at the end of the financing tenor or full settlement upon receipt of payment for which the draw-down is made whichever is earlier.

Please refer to our page on Trade Financing for more details.