Business

Corporate Financing

Providing corporate and SME, comprehensive financing facilities to suit their business needs.
 

Overview

Whether you are in need of financing for working capital, acquisition of fixed assets, project financings, purchase of business stocks or raw materials, our Corporate Banking is a complete financial solution to suit your business needs. At BIBD, we offer a wide range of competitive, Shariah-compliant financing products and services on a short, medium and long term basis. These products are geared towards facilitating the business expansion of all businesses whether corporate entities or SME's.
 

Products Offered

Naqad Financing
  • 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 pay overhead 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.
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.
Demand Line 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 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.
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.
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 drawdown 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.
Musyarakah Financing
  • Musyarakah is a Shariah Contract which basically means partnership. It refers to the merging of capital provided by the partners for the purpose of sharing in profit. Under this financing arrangement, the company and the Bank will each contributes an agreed amount of capital and formed a partnership to carry-out contract awarded by the Government, Government Related Companies or any other pay-master acceptable to the Bank. Any profit generated from the venture will be distributed based on a pre-agreed profit sharing ratio but loss will be shared according to the ratio of capital contribution. The period of financing shall be adjusted to suit the nature and requirements of the contract being undertaken.
Bank Guarantee
  • This is an irrevocable written undertaking issued by the Bank to indemnify and pay an agreed sum of monies to a principal (as the beneficiary) in case of default in fulfillment of contractual obligation by the Bank's customer. The period of cover is normally in accordance to the contract agreement and/or requirement of the beneficiary. The Bank will be charging a fee for the issuance of the guarantee calculated based on the amount of guarantee and period of cover and the rate is subject to the Bank's prevailing risk mitigation and pricing guideline.

    There are various types of guarantees issued to suit various contractual purposes, requirements and needs. They are: Bid Bond, Performance Bond, Payment Guarantee, Security Deposit for Labour Quota. Visit our Other Services section.

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