NSE: 

Bill Discounting

for Corporates

Bill Discounting

We provide extension of working capital finance to suppliers under LC or Invoice discounting.

  • Features
  • Sight Bill Discounting
  • Usance Bill Discounting
  • Invoice Bill Discounting
  • We provide extension of working capital finance to suppliers under LC or Invoice discounting.
  • Facility is provided to Mid / Large corporates having turnover of Rs.500 Crores and above OR minimum exposure (Funded + Non Funded) of Rs.25 Crores
  • Period of the facility is upto 180 days

Generally a documentary bill payable on demand tendered for purchase shall consist of the following: 

  • A Sight draft of the drawer to the value of the invoices of the respective goods consigned. 
  • Documents of title to goods covered by the bill viz. (a) Railway Receipt or (b) Lorry Receipt of an approved carrier or (c) Bill of Lading (Inland). 
  • Invoices or contract notes of Bills of sale in respect of the goods covered by the documents. 
  • Transit Insurance Policies, if they have been taken.

Usance Bill is the one which is expressed to be payable after a specified period (Usance) mentioned in the bill. Usance bill may be a clean bill or may be

  • accompanied by documents of title to goods evidencing dispatch of goods (Railways Receipt/Lorry receipt/ shipping documents)
  • Usance Bill of Exchange
Under Invoice Financing, the lending bank agrees to purchase a company's outstanding invoices (debtors) which are payable over a period of time, on an ongoing basis, and then provides funding by way of pre-payment of invoice value of the approved debt.
 
Following documents are required:
  • Original Invoice
  • Undertaking from the Corporate Buyer agreeing to route the sales proceed to our bank
  • Guarantee / Comfort letter from the corporate buyer
  • Details of monthly / yearly sales to the buyer