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Bill Discounting Facility

Bill discounting is a business practice in which a seller receives payment immediately after issuing an invoice to their customer, provided they meet certain requirements. You can get your payment by submitting the invoice to the relevant financial institutions with minimal documentation. A bill discounting facility helps you get working capital and helps your company increase.

Indian financial institutions are still not in a better position to understand the needs of MSMEs and provide them with adequate funding. Approximately 75% of the MSMEs do not possess any collateral to offer to the banks, leading to a constant shortage of working capital. To address this working capital problem, India’s bill discounting facility is the most favourable and suitable option from all perspectives.

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Unsecured Debt Instruments

Key Features of Bill Discounting Facility

(*T&C Applied)

Bill Discounting Rate of Interest

Currently, in the Indian debt market, unsecured funding starts with 15-16% Pa, that too in the term loan format. When you consider the option of Bill Discounting, this comes under working capital financial instruments. Even if this is an unsecured product the rate of interest starts with 12% PA and you have to pay only for the period you use the bill discounting facility. As soon as your customer pays the invoice, the interest living cycle stops.

Bill Discounting Advantages

1. Speeding up the Working Capital Cycle

Many times working capital gets blocked in an unpaid invoice which can be problematic for the companies. In other words, bill discounting can help you get your cash quickly by allowing you to sell your bills in exchange for a discount.

2. More working capital, more expansion

If you have more working capital, it can lead to faster growth of your business. You don’t have to wait for 50 days or 90 days for your payments. Through bill discounting, you can get the payment almost immediately.

3. Pay interest only on the money that you discounted

You will only pay interest for the amount of money you discount and for the period you use the money. This is a very convenient and flexible option for most businesses and firms. Best fit for working capital management.

4. Early Payment to Suppliers

Many businesses have cash flow problems, and they can’t pay suppliers on time. So, Bill discounting can help you pay suppliers early, which can strengthen your relationship with them.

5. No Mortgage

We offer a bill discounting facility without a mortgage or collateral.

6. Suitable For Working Capital

Businesses need flexible working capital, while most banks offer term loans. However, We at Terkar Capital offer the facility in the CC format.

Understand the bill discounting process from the case study.

Bill Discounting Eligibility Criteria

The eligibility depends on the lending firms or their usual way of conduct. Here’s a breakdown of eligibility criteria to avail of bill discounting facilities in India.

A good credit history and a healthy financial track record
Genuine bills of exchange for creditworthy buyers for sold goods or rendered services, with defined payment terms and due dates.
The drawee of a bill of exchange must be reliable and creditworthy.
Businesses should have the necessary licenses and registrations and comply with relevant regulations.
Businesses must obtain the licenses and registrations and adhere to regulations.

Let’s schedule a brief call to discuss bill discounting for your business!!

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Bill Discounting Documents

This is very important, as documentation can be a significant factor in obtaining a bill discount facility. However, the length of the process is determined by the availability of documentation. Here’s the list:

Owner KYC Documents

Adhar Card (complete page)
Pan Card
Latest Electricity Bill
Current Rent Agreement
Passport Size Photo

Business KYC Documents

GST Certificate
MOA, AOA, Pan Card
Shop Act / Trade License
Certificate of incorporation
Shareholding Pattern
Partnership Deed
Current electricity bill and
Rent Agreement

Banking Documents

All account Bank statements (For the last 12 months)
All current loan sanction letters

Financial Documents

Last 2 years' complete Financials
GST Returns (for last 12 months)

Bill Discounting Facility at Terkar Capital

Terkar Capital is one of the leading bill discounting companies in India. We empower businesses to optimize cash flow, mitigate financial risks, and drive growth. Our cutting-edge approach and deep industry expertise make us a leading force in bill discounting syndication.

We understand that every business is unique, and we dedicate ourselves to crafting tailored financial strategies that address specific needs and unlock untapped potential.

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How Do We Execute?

1. Understanding Client's Requirement

A tailored funding solution based on a thorough evaluation of the client’s business goals and financial requirements.

2. Analysing the Strengths and Opportunities

Leverage the client's financial and operational strengths to optimize their funding prospects.

3. Documentation

Ensuring meticulous preparation of all necessary documents to facilitate a seamless funding process.

4. Identifying the Right Financial Product

Recommending the most suitable financial product to align with the client’s specific goals and requirements.

5. Soft Approval From Financial Institutions

Securing preliminary approval from financial institutions based on the client's profile and funding needs.

6. Actual Submission of the Documents

Submitting all finalised and verified documents to the financial institution for formal processing.

7. Disbursement

Coordinating with financial institutions to ensure timely release of funds.

8. Funding As Required

Providing funds customised to the client’s operational or expansion needs, ensuring business growth.

Check your CIBIL score for free.

Client Feedback

What our clients think about us?

N Nihalani

We have had a smooth experience with all our capital arrangements facilitated via Terkar Capital so far. Its very comforting to work with people as professional and straightforward as Vishal and the rest of his team. Thanks for everything.

C Sonawane

Thank you Terkar Capital for processing my business loan in just a few working days. Very professional & skilled team. They understood my requirements to a level that were beyond my expectations from any lending company. I strongly recommend Terkar Capital.

24th Mile

We are very thankful to Terkar Capital for your efforts in arranging facility. Their approach is very simple, professional, and fast! The team is highly responsive that executed the process in short span of time without any hassles. Great work... Thank you!

M Dwivedi

I got an unsecured business loan within 7 working days .their specialized experts verfied all the documents and granted me the loan .getting a business loan from terkar capital is the easiest way to get a loan.

FAQs On Bill Discounting Facility

No, the unpaid invoice itself serves as collateral.

The discount rate is typically based on factors like the CIBIL score, the invoice amount, and the tenure.

The tenor usually ranges from 30 to 180 days.

No, bill discounting is an off-balance sheet transaction.

It is generally a quick process. However, processing time can vary depending on the financial institution

Terkar Capital is a registered brand of Terkar Global Financial Development Pvt Ltd, an Investment Banking Firm with a national footprint. We work extensively with professionals and businesses of all sizes to arrange debt funding instruments.

Head Office

Castle Eleganza, 103, Bhonde Colony, Dr.Ketkar Road, Erandwane, Pune – 411004, MH-India

Yes@terkarcapital.com

+91 8308629820

Corporate Office

The Capital, Level 7, B-Wing, Plot C – 70, G Block, Bandra Kurla Complex, Bandra (East), Mumbai – 400051.

Mumbai@terkarcapital.com

+91 7414973455

Branch Offices

Nashik | Nagpur | Chhatrapati Sambhaji Nagar | Hyderabad

Operational Presence

Growing Nationwide…

Terkar Capital

In Association with:

MSME Global Mart | MCCIA

CIN – U70200PN2023PTC224016