Bill Discounting
Convert your receivables into immediate working cash.
Discount your invoices and bills of exchange to access funds tied up in receivables, without waiting for the credit period to end.
Rate from 10.00% p.a.
Tenure up to 2 yrs
Interest rates and terms are indicative and subject to lender approval.
Bill Discounting
Key features
- Immediate liquidity on invoices
- Short-tenure facility
- Improves cash conversion cycle
- Competitive discounting charges
Eligibility
- Verified invoices / bills
- Creditworthy buyers
- Established business
Documents
- Invoices & purchase orders
- KYC & business proof
- Bank statements
- GST returns
In depth
Understanding Bill Discounting
A short-term borrowing arrangement where a seller receives an advance from a bank against the unpaid invoices/bills of its customers before the due date.
- The Formula
- Funds Received = Invoice Value - Discounting Charge (Bank's Fee).
- Key Components
- Commercial invoice, Buyer creditworthiness, Discount rate, and Credit period.
- What the Results Mean
- Instantly converts blocked receivables into liquid cash.
- Smart management
- Discount bills from highly rated corporate buyers to secure lower discounting charges.
Regulatory source
Regulated under the Negotiable Instruments Act, 1881 and RBI Master Circulars on Discounting of Bills.