An Alternative Trade FinancingBankers Acceptances or BA is an alternative trade financing product. It is available for funding exports, imports, and local trade. The source of funding for this product is via the Ringgit Interbank market and funding rates are therefore normally pegged against the Interbank market.
HSBC can set up an acceptance credit line for BA financing for customers who qualify.
Because the funding rate quoted for BA is taken from the Interbank market market on a daily basis, the rate is reflective of actual liquidity conditions, and could be at times, cheaper to obtain than bank-based borrowing (ie against BLR).