Difference between FATR and FIM
Wednesday, March 25, 2009
Most of the people are confused with the financing facilities like Finance againt Trust Receipt (FATR) and Finance against Imported Merchandise (FIM). Actually these two facilities are available to cover and retire the LC facility. Brief and comprehensive nature of these facilities are as under;
Letter Of Credit-Sight
- Purpose:To establish LC(s) for the import or raw materials.
- Repayment: Import documents to be retired through own resources and/or post import facility.
- Security: Lien on shipping documents consigned to Bank.
- Purpose: To adjust / retire shipping documents under LC (S) and to cover the transit period
- Repayment: Principal is repayable on or before maturity while Markup is to be serviced upon adjustment of the loan or at the end of each calendar quarter whichever is earlier.
- Security: Trust Receipt
Finance Against Imported Merchandise
- Purpose: To adjust FATR on due date.
- Repayment: Principal is repayable on or before maturity while Markup is to serviced upon adjustment of the loan or at the end of each calendar quarter whichever is earlier.
- Security: Pledge of stock of imported merchandize lying at Mill Premises.
Labels: finance
posted @ 9:15 PM,
5 Comments:
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At March 30, 2017 at 9:17 AM,
Unknown said...
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Good Info, indeed.
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At April 9, 2018 at 4:53 PM,
jhon said...
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The major players in the market are Al Rajhi Bank, National Commercial Bank, Riyad Bank, Al Amthal Finance Company and others. There is a stiff competition in the market and it is a moderately fragmented market. gagner de l'argent
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At September 14, 2020 at 2:27 PM,
said...
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If LC exposure is secured by 100% cash margin, due you still require lien over import documents?
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At June 14, 2022 at 5:45 PM,
said...
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No
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At January 20, 2023 at 12:35 AM,
said...
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no
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