Instrument & Service

Trust Receipt (TR)

Trust receipt financing is working capital for importers.

The cheapest source of finance, comparably flexible maturity period.

Trust Receipt is short term finance in the nature of promissory note to the bank where the loan availed would be repaid on sale of goods (local or export) to the customer.

Trust Receipt (TR) Introduction

Easy Source of Finance – Instant Liquidity

Trust Receipt (TR) is a type of short-term import loan to provide the buyer with financing to settle goods imported under Letter of Credit where the title of goods is held by the bank. Under a TR arrangement, the Bank retains title to the goods but allows the buyer to take possession of the goods on trust for resale before paying the Bank on TR due date. TR financing is applicable to goods imported under the documentary credit.

For documentary collection, we offer our service for import loans application against Import Invoice Financing is a short term loan applicable to a buyer who trades on open account basis.

Advantages of Trust Receipt/Import Invoice Financing

Importer or Buyer may enjoy the following benefits under TR/Import Invoice Financing:

Do not need to effect payment immediately when documents are presented under documentary
credit, documentary collection or open account.
Financing can be up to 100% of the documentary credit, documentary collection or invoice value.
Enjoy credit terms pre-approved by the Bank, with principal and interest only payable on maturity.
Buyer’s working capital or cash flow is not tied up and can be deployed for other business
purposes.

Here’s an infographic to illustrate the entire process regarding the Standby Letter of Credit:

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Trust Receipt (T/R) Benefits

Get better cash flow with short-term trade financing for your purchased or imported goods. Hold and sell your goods as a trustee for Bank, and repay your Trust Receipt (T/R) with interest on its maturity date or when your goods have been sold, whichever is earlier.

Buyer Benefits

Enhance business liquidity with lower interest rate compared to O/D’s
Increase business opportunities on flexible production and distribution with our fast and convenient credit approval process.
Flexibility to repay on or before the maturity date.
Get financing up to 100% of your invoice value.

4 types of T/R:

T/R under Import Letter of Credit (L/C)
T/R under Import Bills for Collection (B/C)
T/R under Open Account
T/R under Advance Payment

Trust Receipt (T/R) Benefits Processing Steps

Step 1: Trust Receipt (T/R) Request

Approaches Siam Kredit for the want of trust receipt by filling the required forms and completing the necessary process.

Step 2: Bank Approval

The bank on being satisfied with the documentation appoints the customer as its agent to purchase the good required by him on behalf of the bank.

Step 3: Bank pays the purchase

On receipt of goods, the bank pays the purchase consideration to the supplier of goods within the timelines agreed.

Step 4: Payment

The Payment is made only to the bank account as mentioned in the trust receipt document.

Step 5: Goods obtained

The goods obtained are segregated and stored in the warehouse of the borrower until sold.

Step 6: Closing balance of the good

The Bank is intimated on a periodic basis about the closing balance of the good and its condition.

Settle the Trust Receipt (T/R)

The purchase consideration realized when sold is first used to settle the trust receipt’s principal and interest.

Receive up to 90% value of exports coverage.

We can Achieve Results others can’t because we understand from the Inside, what it takes to close a deal from the Outside!

“With many tears of Finance and Banking Industry Experience the Siam Kredit Executive Team understands the Banking Industry from the Inside because members of our Executive worked in the Financial Instruments Department of a World Top Bank.”

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Siam Kredit, Financial Consultant Expert

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Consultation services and solution on Letter of Credit (L/C) / Standby Letter of Credit (SBLC) / Bank Guarantee (BG) / Letter of Guarantee (LG) / Trust Receipt (TR) / Packing Credit (P/C) / Bills for Collection (B/C) financial transactions by local and international networks. Guarantees of international and domestic contracts or business with the world top ranking financial institutions’ list starting from up to 500k USD Packing Credit or Discount, buying, selling, leasing, renting, SWIFT MT799, MT760, MT103

Siam Kredit: Bangna Tower A, 16th Floor, 2/3 Moo 14, Bangna Trad Road, Km 6.5, Bang Kaeo Subdistrict, Bang Phli District, Samut Prakan 10540

Our aim is to help businesses become successful. Our knowledge of industries, companies and countries will help you make the right decisions and avoid risks. We offer efficient solutions for all situations, even when the business climate is challenging, working to protect your business and safeguard your corporate financial health. We provide financial consultancy and other services for risk management when you trade at home or overseas. We help & consult for your business finances with services tailored to your needs. We provide bonding to reassure business partners your contractual obligations will be met. Our proprietary data helps you select the best companies to trade with and the right terms to offer them. We examine and monitor possible credit threats to your business. Our objective is to help you avoid financial losses and fully understand the financial stability of your business partners. When you have a payment default, we manage claims to give you confidence and peace of mind, so that you can focus on developing your business.