QUESTION 1

Read the following mini case carefully and answer all questions that follow.

Alam Plastic Enterprise Sdn Bhd, (APE), is a medium-sized manufacturing and trading company operating from Air Keroh Industrial Area, Melaka. With an annual turnover of RM15.0 million, the business cycle of APE consists of purchases of plastic resins from one Indonesian supplier on cash terms and two prominent local suppliers whose payments are on 60-days credit terms. The company also exports all its finished products to established retailers in Europe and USA on documents against acceptance (D/A) terms. As a newly appointed marketing executive of a local bank at its Air Keroh Branch, you are trying to entice APE as a new customer of your bank. Identify FOUR (4) different trade financing facilities that your bank can offer APE and explain how the facilities can be of help to the business of the company. Your explaination should cover particular listed below:

i. Name of financing facility,

ii. Features of this facility / Ciri-ciri kemudahan ini ,

iii. General purpose of this facility / Tujuan am kemudahan ini,

iv. Advantage of the facility to APE / Kebaikan kemudahan ini kepada APE,

v. How does the facility helps APE/Bagaimana kemudahan membantu APE