Document background
The Credit Payment Agreement Letter is a fundamental document in Malaysian business transactions that formalizes credit arrangements between parties. It is typically used when a creditor extends credit facilities to a debtor, whether in business-to-business or business-to-consumer contexts. The document must comply with Malaysian financial regulations, including the Financial Services Act 2013, Contracts Act 1950, and relevant consumer protection laws. It contains essential information about credit terms, repayment schedules, interest rates, default provisions, and remedies. This letter serves as both a formal notification of credit approval and a legally binding agreement, making it crucial for establishing clear payment obligations and protecting both parties' interests under Malaysian law.
