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LC Discounting Facility

Every business requires working capital. However over the period, the term “Working Capital” has bifurcated into many areas. It has changed as per the convenience of the participants. In modern times, the Working Capital Facility bifurcates into fund-based and Non-fund-based. LC Discounting is one of the best and most convenient Non-fund-based credit facilities. The borrower can avail of this facility from the bank.

In the Indian market, being a developing nation, small to medium to big businesses exist here. Without proper financial arrangements, small and medium businesses struggle. Thus, it can impact the overall profitability of the country’s economy. To counter this issue and exterminate the economic decline banks, lending firms, and financial institutions provide unsecured business loan facilities. Lending the businesses without collateral causes the interest rates to go higher and the loan duration shrinks.

Key Features to Avail LC Discounting Facility

Advantages to Apply for LC Discounting Facility

To the Seller

Protection for the payment
Transaction backed by LC is the confirmation of the order and specification. This reduces the risk of the wrong production

To the Buyer

Certainty to receive the goods.
Issuing LC shows the financial creditworthiness of the seller. Helps to smoother future transactions with sellers and bankers.

Understand the execution process of LC Discounting from the case study.

Steps Involved in the Discounting of LC

When the buyer and seller decide to buy and sell the particular product and want to justify the transaction backed by the LC discounting, the process of LC issuance and discounting of LC starts. The standard process in the LC is as follows –

Step 1

The buyer has to issue the LC to the seller. So he has to approach his banker and request for the issuance of the LC. While applying for the LC the applicant has to provide all the required details for the LC issuance. That may include, the name of the seller, the swift code, amount, details of the products and shipments, etc.

Step 2

Once all the details are received, the opening bank will issue the LC to the seller. Here the LC issuing bank or advising bank will add the name of the advising bank or where LC is expected to get discounted.

Step 3

Once LC is issued, the advising bank will cross-check the authenticity and the given details. If advising banks that justify all the given inputs are correct then it will send the LC to the seller and if any corrections need to be done, it will again send the details to the issuing bank.

Step 4

Receipt of the LC by the seller. At this stage, the seller receives the LC from the buyer. This is the confirmation to the seller that now his payment is confirmed. So, he starts the proceeding for the shipment of the goods.

Step 5

Once the goods are manufactured and shipped to the buyer they will not reach immediately to the buyer. Here the seller will get the bill of lading from the port where he has shipped the goods. The seller will take this bill of lading and will submit it to the advising/ negotiating bank.

Step 6

At this stage, the negotiating bank will take the bill of lading and confirm all the terms and conditions complied with. Once those are confirmed, the advising bank will issue the payment to the seller. This process is also known as LC discounting. At this stage, the advising bank will send the documents to the opening bank (The bank that has issued the LC) and will demand the payment.

Step 7

Once the opening bank receives all the documents, the bank confirms everything with the buyer. Once the buyer confirms all the documents are OK, the issuing bank will take the payment from the buyer and will make the payment to the advising bank.

LC Discounting Facility at Terkar Capital

Terkar Capital facilitate LC discounting, a non-fund-based credit facility that offers working capital without collateral, competitive interest rates, flexible loan terms, and a quick application process. It is a great option for businesses in India looking for a reliable and affordable source of working capital.

So, get fast access to working capital with LC discounting in India.

How do we Execute?

Here’s the execution process to avail of LC Discounting smoothly at Terkar Capital.

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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.

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.

LC Discounting Facility

Key Features to Avail LC Discounting Facility

Advantages to Apply for LC Discounting Facility

Steps Involved in the Discounting of LC

Step 1

Step 2

Step 3

Step 4

Step 5

Step 6

Step 7

LC Discounting Facility at Terkar Capital

How do we Execute?

What sets us apart?

1. Fast Turnaround Time

2. Confidentiality

3. Competitive ROI

4. Hassle-free Processing

5. High Level of Integrity

Client's Testimonial

What our clients think about us?

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