BankMuscat
also offers advance against Trust
Receipts.
A sum of money is advanced for a pre-agreed tenor of no longer than one year by the Bank for the sole purpose of refinancing payments made by the customer covering purchase of goods either under a letter of credit established through us or by way of documents received on collection without a letter of credit. The documents negotiated under the letters of credit or documents received on collection are then released to the customer against his signed Trust Receipt and promissory
note. The advance is repayable in whole or in part, as and when the customer collects sale proceeds.
The
Bank also advances a sum of money for a pre-agreed tenor of no longer than one year against
money receivable by the customer at a later date on account of transactions of business activities he is engaged in. The advance is made against a promissory note signed by the customer and copies of documents evidencing
money due to him at a later date, i.e. progress certificate, invoice
etc. The receivable must be irrevocably assigned in favour of the Bank supported by written undertaking from the person/entity from whom the receivable is due.
Real Estate Mortgage Loans
are also provided by BankMuscat.
A Term Loan is provided for the sole purpose of part financing the development of a real estate property, secured by a legally valid mortgage on the property and is primarily repayable by future income to be derived from the property.
Extension of credit takes the form of discounting a Bill of Exchange where monies are lent
by BankMuscat against a Bill of Exchange drawn by a maker on and accepted by the acceptor, for a specific sum of money to be due and payable on the date stated on the bill.
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