Bill discounting or invoice discounting is a trade when a seller gets his payment once he raises the invoice to his customer and if he/she fits certain criteria. You can get your payment once you submit the invoice to the respective financial institutions after the submission of minimal documentation. Invoice discounting will help you to get your working capital and will help your firm grow rapidly.
Indian Financial Institutions are still not in a better condition to understand the MSMEs and to fund them accordingly. Almost 75% of the MSMEs have no collateral to offer to the banks. And there is always a crunch of working capital for them. To resolve this working capital issue, bill discounting will stand the best and suitable option from all the angles.
Benefits of Bill Discounting
Many times working capital gets blocked in an unpaid invoice which can be problematic for the companies. Thus, through invoice discounting, your cash can get freed up rapidly by discounting bills of exchange.
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.
You will only pay interest for the amount of money you discount and for the time period you use the money. This is a very convenient and flexible option for most businesses and firms. Best fit for the working capital management.
Several businesses have cash flow problems nowadays. Due to this, they cannot pay their suppliers on time. When you get your invoice paid early, you will pay your suppliers early. Through invoice discounting, you can pay your suppliers quickly and also before time in order to avail of early payment discounts. This will help to strengthen your relations with your suppliers and they will always stand by your tuff conditions, for your support.
One of the biggest issues companies face while invoice discounting is a mortgage. Not all companies have mortgages and this results in the working capital crunch. We at Terkar Capital, arrange the bill discounting but absolutely with no mortgage. So this will be funding without a mortgage option for you.
Business requires the working capital in flexible format, where they can use and refund the exposure as and when required. But most financial institutions have a term loan format for unsecured working capital. But we at Terkar Capital arrange it in CC format. The limit will be open for you and you can use the limit as and when you raise the invoice to the client.
Currently, in the Indian debt market, unsecured funding starts with 18% 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 discounting facility. As soon as your customer pays the invoice, the interest living cycle stops.
Documents Required For Bill Discounting
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.
Terkar Capital is one of the best financial firms, that provides a hassle-free arrangement for bill discounting without mortgage across India. It is one of the most modernized and highly specialized bills discounting syndication companies in India. We understand the customer and their financial strengths and weaknesses and only then suggest the best financial solutions. This helps businesses to minimize their risk and to get access to better financial products, eventually saving the cost and strengthening the bottom line.
If you have any questions, please do not hesitate to ask us. Please also call us or email us before visiting to make sure that you will be served with our best services.
8308629820 / 8262831330