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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.

Key Features of Bill Discounting Facility

Advantages of Bill Discounting Facility

You can discount your invoices from the Financial institutions and get your invoices paid immediately.
The discounting can be done up to 95% of the invoice amount and the remaining will be paid once your debtors pay.
Bill also makes it easier to deal with large corporates.
BD eases the working capital cycle

Eligibility to get a Bill Discounting Facility

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.

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.

Documentation

The whole process of the documentation is very simple and time-saving. Initially, when you approach us we get all the major documentation done. Once the limit is approved you only have to submit the invoice and in a day or two, the amount gets credited to your account.

Benefits Bill Discounting Facility

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 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.

How do we Execute?

Bill discounting is a financial arrangement where a business sells its unpaid invoices to a financial institution at a discount to receive immediate cash. It’s a way to improve cash flow and manage working capital. Here’s the bill discounting process.

Check your CIBIL score for free.

What sets us apart?

1. Fast Turnaround Time

We cordially track the deadlines and make our quality tangible, while executing finance projects well ahead of time.

2. Confidentiality

At Terkar Capital, We comply with the highest professional confidentiality standards. All client information is discussed in strict confidentiality.

3. Competitive ROI

We find you the right lenders with similar terms and the lowest rate of interest.

4. Hassle-free Processing

Creating a stable ownership structure for financiers by establishing a secure transaction process.

5. High Level of Integrity

We are building our reputation through reliability, integrity, and honesty. We connect to our clients on personal grounds that include transparency and liability.

FAQs On Bank Guarantee Facility

1. Is there any collateral required for Bill Discounting?

No, the unpaid invoice itself serves as collateral.

2. How is the discount rate calculated?

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

3. What is the typical tenure for Bill Discounting?

The tenor usually ranges from 30 to 180 days.

4. Is there any impact on the balance sheet due to Bill Discounting?

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

5. How long does it take to process a Bill Discounting request?

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

Client's Testimonial

What our clients think about us?

H Tamhankar

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!

J Agwan

Terkar Capital is upright at delivering specialized funding needs. They implement what they state. Because of you, we're able to make our business reach an exponential level.

A Waghmare

Obliged for the services by Terkar Capital in helping secure funds for the business. They offer a broad range of advanced funding solutions and deliver financial solutions that are right for customers. Grateful for the services rendered by your firm.

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.

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Financial Instruments We Arrange

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.

Terkar Capital

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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

Growing Nationwide…

Operational Presence

CIN – U70200PN2023PTC224016