Top 10 Bill Discounting Companies in India

Bill Discounting is the smart financing option now-a-days for small and medium enterprises. It can also be called modern type of banking. In this process bill holder can get discount on the maturity. Bill discounting is done in the scenario when a buyer buy something from a seller and payment is to be made through letter of credit.

How Bill Discounting Works?

Bill discounting is commonly upheld by Letter of Credit. Merchant or exporter when they get Letter of Credit in support of them, at that point they supply products under the Letter of Credit to the purchaser once the merchandise have transported the reports are introduced under the Letter of Credit to the giving bank for the acknowledgments once the dealer gets the acknowledgments, at that point he moves toward bill discounting bank or any money related mediator to limit it. The financing organizations confirm the authenticity of the bill and reliability of the purchaser and deduct suitable edge, rebate and expense according to standards and assets the merchant. On due date the financing bank gathers the cash from the purchaser to 100% of the receipt. Who will gather the cash is absolutely rely on the understanding between the vender and the financing bank. Bill discounting is a post shipment item that implies financing bank will have the option to limit the bill of trade simply after the shipment of the merchandise occurs.

Benefits of Bill Discounting:

1. Get Funds on with one time documentation
2. Improve Cash Flow
3. Help business to sell goods on credit
4. Reduces available collateral
5. Much cheaper interest rates as compared to business loans.

There are some companies in India that offers bill discounting in India:

Bill discounting Companies in India

1. M1xchange : M1’s Trade Receivables Discounting System “TReDs” is an online exchange being set up under the approval of Reserve Bank of India (RBI) to facilitate discounting of invoices and Bills of exchange on a PAN India basis.
   
2. RXIL: RXIL operates the Trade Receivables Discounting System (TReDS) Platform as per the TReDS guideline issued by Reserve Bank of India (RBI) on December 3, 2014.
3. Invoice Mart: Invoicemart, a digital platform which connects MSME suppliers and corporate buyers to multiple financiers. It enables sellers to sell their invoices to financiers, thus unlocking working capital quickly. Invoicemart is a Trade Receivables Discounting System (TReDS) platform set up in order to resolve the credit challenges faced by the MSMEs.
4. KReDS
5. LendingKART
6. Pincap
7. Livfin

These are the companies that can really help you in your business giving you a better finance solution. If you are looking for best bill discounting company in India then you must know M1xchange TReDS is an online exchange being set up under the approval of Reserve Bank of India (RBI) to facilitate the discounting of invoices and bills of exchange on a PAN India basis.

If you have more suggestions and want to add more Bill Discounting companies in our list . Please suggest us though comments. We will add them immediately.