Bill Discounting In India & Its Features

Bill discounting is a financial service that allows businesses to borrow money from banks at a discounted rate. This service helps businesses manage their cash flow by allowing them to pay back loans over time rather than having one large payment due immediately

Bill discounting is a financing solution that provides small businesses with immediate access to cash when they need it most—but don’t have the necessary funds on hand. If you want to learn more about how this works and whether bill discounting is right for your company, read on!

Bill discounting is a method used by businesses to borrow money from third parties, with interest being charged.

A third-party lender will typically charge a fee in exchange for providing the loan, and this fee can range anywhere between 1%- 6%. The interest rate on the loan is also determined by prevailing market conditions at time of application.

Bill discounting is a form of invoice factoring, in which a business obtains funds from a lender by using its outstanding invoices as collateral. Bill discounting lets businesses obtain quick access to capital. This method of financing is often preferable over more traditional banking methods such as loans or lines of credit. One advantage of operating online is that the process can be completed without paperwork or lengthy processing time, and funds may be available immediately—sometimes within 24 hours.

Main Features -

• A bill discounting facility provides a way for you to borrow money against the value of your invoices, which will be paid by customers. This is an efficient and low-cost route towards short-term finance and business growth.

• We offer financing based on the value of your outstanding invoices. We’ll provide immediate funding and collect repayments from customers as they pay their bills.

• If you are unable to access capital in order to grow your business, working with a merchant Cash Advance provider could be an appropriate alternative.

In simple language -

-Easy to set up and run

-Reliable, secure and flexible

-Flexible payment terms

-No limit on how many bills you can discount