Letter of Credit Services by
Bank Pembangunan Malaysia Berhad
Secure, Reliable & Bank-Backed Trade Finance Solutions
Overview of Letter of Credit (LC)
A Letter of Credit (LC) is a secure trade finance instrument issued by a bank that guarantees payment to a seller once predefined contractual and documentary conditions are fulfilled. It is widely used in international trade to reduce payment risk and ensure smooth cross-border transactions.
At BPMB, we provide professionally structured Letter of Credit solutions that help businesses manage trade risk, protect cash flow, and execute international transactions with confidence. Our LC services are designed to support secure global trade while maintaining compliance with international banking and trade standards.
Why Letters of Credit Are Critical in International Trade
Global trade involves multiple risks, including delayed payments, counterparty default, currency exposure, and jurisdictional uncertainty. Letters of Credit mitigate these challenges by replacing buyer credit risk with a bank’s payment commitment.
By using a Letter of Credit, businesses gain:
Payment security backed by a financial institution
Assurance that goods and documents comply with agreed trade terms
Greater confidence in new or high-value trade relationships
Types of Letter of Credit Solutions Offered by BPMB
Import Letter of Credit
Import Letters of Credit help buyers demonstrate strong financial credibility to overseas suppliers. They ensure that payment will be made once shipment and documentation conditions are met, supporting smoother procurement and reliable import-export financing while enhancing trust, compliance, cash flow visibility, and relationships
Export Letter of Credit
Export Letters of Credit protect sellers by guaranteeing timely payment upon submission of compliant documents. This improves liquidity, supports working capital management, and reduces exposure to payment default.Each structure is tailored to align with the commercial terms and risk profile of the transaction.
Why Letters of Credit Are Critical in International Trade
- Reduces international payment risk
- Enhances trust between trading partners
- Improves cash flow visibility
- Supports high-value and recurring trade transactions
- Enables safer entry into new global markets
How BPMB Adds Value to Your Trade Finance Strategy
BPMB goes beyond standard Letter of Credit issuance by providing advisory-led trade finance solutions. Our team assists clients throughout the transaction lifecycle, from structuring to execution.
Transaction-specific LC structuring
Documentation and compliance guidance
Coordination with trusted banking partners
Risk assessment and process optimization
Who Can Benefit from BPMB Letter of Credit Services
Importers and exporters
Manufacturers and distributors
Commodity
traders
International trading companies
Businesses expanding into global markets
Why Choose BPMB for Letter of Credit Services
Trade finance expertise across international markets
Customized LC solutions based on business needs
Secure, bank-backed payment structures
Efficient processing and professional advisory support
Strong focus on compliance and risk management
