Bill Discounting or Invoice Discounting as is termed sometimes is used to sell an invoice / Bill in advance to a financial institute before its due date for receiving payment. Now this is a very interesting product as the rist gets calculated from the end customer's side and thus the creditworthiness and trading history of the customer is checked rather than the business who is trying to discount the bill.
As Bills / Invoices are technically called as "Bills of Exchange" which has a value to it, and which is payable to the bearer of the goods or the order itsef.
The biggest benefits of Bill discounting that can be seen are:
- Improved Cash flow and working capital
- beneficial for new startups with low liquidity
- Risk of bad debt gets passed on the financer of Bill Discouting
- It is a quick access process
- Only payment needs to be used is the money used
Time is of essence and in a situation when you are in business it can make all the difference to a business when the funds when required are received on time and thus the business can function smoothly.
Have any such requirement for Bill Discounting and just point and click. . . We shall respond promptly and get your Bill Discounting in stipulated time frame itself.