Bill Discounting Loan

Bill Discounting

Bill discount also known as invoice discount is a trade practice in which banks, NBFCs or other financial institutions pays the bills of a purchaser through the letter of credit to the seller. In return bank charges certain rate of interest from the purchaser. This helps the banks, NBFcs or financial institutions to increase their revenue. The amount of loan approved, depends upon certain factors like your financial requirement, credit assessment. We can grant up to 90% of the invoice value depending upon conditions.

If you are exhausted or unable to obtain credit limits from banks due to lack collateral or tedious processes, your buyers are demanding a longer credit period and more leads for export orders are lined up but you are unable to serve them as you lack the resources and finance then Bill Discounting is a good option for your working capital finance.

Eligibility

  1. Less bad debts
  2. Customers who make timely payments
  3. Customers have a minimum 30 day credit period
  4. You meet the minimum turnover criteria

Features and Benifits of Bill Discounting

  1. Bill Discounting is confidential process in which customer information is not shared.
  2. It is a suitable business finance option for small businesses that find it difficult to secure a loan.
  3. Funds are released from the unpaid invoices.
  4. Instant access to cash held up in invoices
  5. More flexible than a loan or an overdraft
  6. Payment collection is under control of the supplier

Documents:

  1. Documents required for Invoice Discounting
  2. KYC documents of the applicant/co-applicant- PAN card copy, Address proof
  3. GST registration certificate and GST returns
  4. Ledger of debtor /debtors for which discounting is required
  5. 6 months Bank Statements
  6. Audited financials of the business

Eligibility

  • You should be in operational business for a minimum of 2 years.
  • You should have a self owned house or business premise.
  • Your annual income should be minimum Rs 3 lacs in last 2 financial years.
  • You should have a good CIBIL score & credit history.

Features

  • Loan is provided as Overdraft Facility,which reduce your interest cost.
  • Loan tenure of 6 months to 24 Months.
  • Loan amount from 50,000 to 5 lac
  • Fast disbursement : within 24 hours after completion of documents

Documents

  • KYC documents of the applicant and the organisation
  • ITR – Financial documents for the last 2 years
  • Bank statements for the last 12 months
  • Existing Loan or overdraft sanction letters ( if any)

Testimonials

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