IEFS is without recourse financing scheme for Small and Medium Enterprises (SMEs) who are Indirect Exporters (Sellers), whereby *Participating commercial banks discount commercial documents arising from the supply of goods and/or services to Direct Exporters (Buyers) with coverage provided by EXIM Bank to the participating commercial banks.
Essentially, once the Indirect Exporter sells goods or renders services under credit terms to the Direct Exporter, the Indirect Exporter presents the documents for discounting to the Commercial Banks. In the event the Direct Exporter fails to pay the Bank on the due date, EXIM pays claim to the Bank under the Indirect Exporters’ Financing Scheme.
EXIM Bank covers non payment arising from:
Insolvency of the Direct Exporter
Payment default of the Direct Exporter
Objectives of IEFS
To support Malaysian exports by providing backward linkages financing facility.
Provides post-delivery financing to Indirect Exporters.
Key features of IEFS
Purpose
For the purpose of enabling the Indirect Exporter to discount the trade receivables in respect of goods supplied/services rendered to the Direct Exporter.
Maximum Period
(Period Financing)
The Indirect Exporter can grant a maximum credit period of up to 120 days to the Direct Exporter. A 60 days extension subsequent to the maximum credit period can be granted making a total of 180 days.
Percentage of Cover
Up to 90% of the bank’s loss.
Percentage of Financing
Up to 100% of invoice value.
Commencement of Cover
In respect of goods sold, from the date of delivery of goods or in respect of services performed, from the date of submission of invoice.
Eligibility
SME’s defined by the National SME Development Council as follows:
Sector
Number of Employees
Annual sales Turnover
Manufacturing (including agro-based as well as manufacturing related services
Broad: 150 or less
Micro: less than 5
Small: between 5 and 50
Medium: between 51 and 150
RM25M or less
Less than RM250,000
Between RM250,000 and RM10M
Between RM10M and RM25M
Primary Agriculture
Broad: 50 or less
Micro: less than 5
Small: between 5 and 19
Medium: between 20 and 50
RM5M or less
Less than RM200,000
Between RM200,000 and RM1M
Between RM1M and RM5M
Services (including ICT)
Excluding manufacturing related services
Broad: 50 or less
Micro: less than 5
Small: between 5 and 19
Medium: between 20 and 50
RM5M or less
Less than RM200,000
Between RM200,000 and RM1M
Between RM1M and RM5M
Companies incorporated in Malaysia under Companies Act 1965
Non-Resident Controlled Companies (NRCC)
Sole Proprietorship and Partnership
Manufactures, Agriculture Producers, Services Providers and Traders
When are claims paid by us?
Four months from the due date.
What are the premiums and other charges payable?
Premium rate: minimum of 0.073% per month.
Interest:COF + 2.00% per annum (maximum margin).
Standard Bank Charges.
Benefits of IEFS
Attractive financing cost including EXIM Bank’s premium.
Nominal Stamp Duty at RM10 for loan documents.
Lower legal costs at 10% of solicitors scaled fees or RM500, whichever is higher.
Fast track approval.
The scheme can assist you to:
Turn your credit sales into cash sales
Insure your receivables
Diversify your client base
Protect your balance sheet
Broaden your product lines
For more information on this scheme, you may contact the Indirect Exporters’ Financing Scheme (IEFS) participating banks as follows:
IEFS is without recourse financing scheme for Small and Medium Enterprises (SMEs) who are Indirect Exporters (Sellers), whereby *Participating commercial banks discount commercial documents arising from the supply of goods and/or services to Direct Exporters (Buyers) with coverage provided by EXIM Bank to the participating commercial banks.
