What is Finance against Trust Receipt (FATR)?
- The Bank may at the request of the customers, at the time of opening of LC or at a later stage, release the import documents of related goods received under the LC or against bills under collection both inland or foreign, to enable the customer to obtain delivery of the goods
- And arrange to retire the documents out of the sale proceeds of goods, or from other sources, within the stipulated period, which is set in line with the customer’s inventory turnover cycle.
- The documents of title are delivered against the customer’s signature on the prescribed Trust Receipt form/related security documents covering hypothecation of goods.
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