Bill discounting facility, also known as invoice 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 along with minimal documentation. A bill discounting facility helps you get working capital and helps your company proliferate.
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, a bill discounting facility in India emerges as the most favourable and suitable option from all perspectives.
Discounting up to 95% of Invoice amount
No Collateral Required
Smooth Processing
End-to-end Execution
Flexible Terms
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.
Currently, in the Indian debt market, unsecured funding starts with 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.
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.
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.
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 period you use the money. This is a very convenient and flexible option for most businesses and firms. Best fit for working capital management.
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.
We offer a bill discounting facility without a mortgage or collateral.
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.
Terkar Capital is one of the leading bill discounting companies in India. We help businesses reduce risk, access better financial instruments, lower costs and improve their bottom line. We are one of the most advanced and highly specialized bill discounting syndication companies. Terkar Capital takes the time to comprehend our client’s financial strengths and weaknesses before recommending the most appropriate financial products.
We cordially track the deadlines and make our quality tangible, while executing finance projects well ahead of time.
We comply with the highest professional confidentiality standards. All client information is discussed in strict confidentiality.
We find you the right lenders with similar terms and the lowest rate of interest.
We create a stable ownership structure for financiers by establishing a secure transaction process.
We are building our reputation through reliability, integrity, and honesty. We connect to our clients on personal grounds that include transparency and liability.
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