Page 26 - FIN435 RHB vs BPMB

ADVANTAGES DISADVANTAGES
• Using credit card is safer than • Paying high rates of interest.
carrying cash.

• A credit card can build your credit • Credit damage.
rating.

• Earn reward points when you spend. • Credit card fraud.

• Credit cards give an emergency line • Cash advance fees and rates.
of credit.

• Can consolidate debts and save • Annual fees.
money on existing balances.

iii) Trade Finance: Bank Guarantee

Bank Guarantee is a financial instrument where the bank guarantees a stated sum
of money to the beneficiary upon non-performance of the applicant's obligation and
performance. RHB Bank will assist in issuing guarantees on your behalf to support your

business activities. Guarantees include bid, tender, performance, advance payment,
customs, utilities and security deposit guarantees. Bank guarantees in nature are separate

transactions from the contracts they relate to.
Benefits
- RHB Bank provides an undertaking on your behalf, and provides comfort and assurance

to your business counterpart
- RHB Bank assists in reviewing the content of your guarantee before issuance, thereby

protecting your interest
- Facilitates transactions between contracting parties to extend your reach beyond local
boundaries

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