Receivable Financing/Bills Discounting is essentially the sales of receivables. It provides an innovative cash management solution for further business opportunity as it unlocks your receivables and turns it to cash the fastest way.

Bills Discounting Facility is utilized for purchase of receivables in the form of post-dated cheques/confirmed bill for payment. These bills represent payment to the seller for any underlying business activity and are drawn on the buyer. The tenor of the bills may vary according to the agreed credit period and is normally in the range of 30-120 days. Under this facility, bill for payment are presented to the bank by the seller, which in turn are purchased / discounted and proceeds credited to company’s (seller) account.

Salient Features

• Receivable Financing/Bills Discounting is simply selling invoices to receive your money immediately instead of waiting to be paid by your clients.
• Upon confirmation acceptance of the Bill by Company to whom supplies have been made, the Bank immediately makes payment upto 90% of the net bill amount to the supplier.
• On the due date, as agreed earlier, payment is received by the Bank and excess amount is refunded to the supplier, supplier subject to deduction of discount charges.
• Unlike a loan, collateral is not required in Receivable Financing/Bills Discounting.
• There is no interest and no debt shows up on your balance sheet.