| Asset Based Financing |
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Business Financing-i (Term Financing For Working Capital Requirement)
Business Financing-i is an exclusive financing solution granted to a business entity to finance its working capital requirement. Essentially, it is a specific form of term financing based on acceptable Shariah contracts designed to alleviate the shortfall in customer’s cash flow; to enable companies to fund their business for any purposes.
BENEFITS
- Pricing can be equally competitive as compared to conventional Term Loan. Pricing is fixed (pre-determined upon drawdown) and thus provides customer with a hedge against future rates movement. It can be amortized on monthly or quarterly basis to match the cashflow or revenue stream of the customer
- Efficient for future upgrades and replacement
- Leasing-i and Hire Purchase-i structures are normally on an amortized basis. This essentially provides customers with an avenue to improve and better manage cash flow
- No additional collateral required for Leasing-i and Hire-Purchase-i
- Matching of term funding to long-term asset life/contract, can free up its traditional funding sources or cash balances/excess cash for other meaningful purposes such as business expansion
- Can be self-liquidating as the asset generates income to defray rental/installment costs
- For equipment/machinery supplied by foreign supplier/vendor, a specific Letter of Credit (LC-i) can be arranged to facilitate the importation. Subsequently, the LC-i will be converted into the respective Asset Based Financing via Hire Purchase-i, Leasing-i & Bai’ Bithaman Ajil
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