Bill Discounting Facility
Bill Discounting is generating funds / finance against the invoices / bills by third party after deduction of discounting charges as mutually accepted by both parties
Bill Discounting comes as a great support for exporters, traders and merchants. Discounting is available through major public and private sector banks as well as private financial institutions. Both Purchase and Sales bill can be discounted as per requirement. This type financing / lending helps the borrower with working capital finance for their trade activities.
The Facility for Discounting of bills is available for all legal and lawful business carried under proper business terms. The bills which can be discounted are, bills backed with letter of credit, invoice discounting, drawee bills discounting & clean bill discounting.
Some private and public sector banks including private financial institutions offers bill discounting facility upto 90 to 180 days. The bills backed with domestic letter of credits are discounted with simplified procedure.
On the other hand banks or private financial institutes may can ask for acceptance of the bills by the party, before discounting them. Some banks deals and private institution discount only trade bills.
