"A written undertaking by KFH Malaysia at the request of the Buyer/Applicant to pay the Seller/Beneficiary a certain sum of money as stipulated in the Letter of Credit, provided that the Seller/Beneficiary complies with the terms and conditions of the Letter of Credit. The Letter of Credit can be issued under Wakalah contract (agency relationship) or Murabahah Contract (Cost Plus). Under Wakalah concept, upon received all the shipping documents customer in order to collect the documents instruct KFH Malaysia to Debit their current account for settlement hence payment to its supplier. Whereas under Murabahah concept, upon receiving shipping documents the goods purchased can be financed under the Murabahah contract (cost plus)."

"A financing facility under the Murabahah contract, to finance domestic or international trade documents against Inward Bills for Collection or Open Account. Murabahah refers to the sales of goods at a price, which includes cost plus profit as agreed by both seller and the buyer. This contract allows the customer to take delivery of the goods immediately on arrival and settle with the Bank on a deferred payment arrangement."

"Shipping Guarantee is a facility where KFHMB indemnifies and guarantees the shipping company for the release of goods to the buyer/importer without the presentation of the original Bill of Lading. Issued under the Kafalah contract, it can be defined as a surety provided by a party to the owner of the goods, who had placed or deposited his goods with the shipping company, whereby any subsequent claim by the owner for his goods must be met by the guarantor."

"Bank Guarantee is an irrevocable written obligation issued by KFH Malaysia to pay an agreed sum, in case the customer defaults in fulfilling his obligation. Issued under the Kafalah contract, Bank Guarantee is KFH Malaysia¿s irrevocable undertaking to guarantee performance or financial standing of a customer. Bank Guarantee is not a financing instrument."

Documentary Collection is a way of channeling shipping documents for Import and Export where KFH Malaysia act as a (Presenting / Collecting) Agent bank to channel the said documents to the intended recipients. Governed by URC522 rules, collection documents could be either Document Against Payment "D/P" (At Sight) or Document Against Acceptance "D/A" (Usance Term).