Bill Discounting and Invoice Discounting

Bill Discounting and Invoice Discounting – IDBI Bank Bill Discounting and Invoice Discounting

IDBI Bank Fund Based assistance offers both Purchase and Sale Bill Discounting and also Invoice Discounting for OEM /vendors to large Corporates.

Under this type of lending, Bank takes the bill drawn by borrower on his (borrower's) customer and pay him immediately deducting some amount as discount/commission. The Bank then presents the Bill to the borrower's customer on the due date of the Bill and collects the total amount. If the bill is delayed, the borrower or his customer pays the Bank a pre-determined interest depending upon the terms of transaction.

Bills are classified into four categories as LCBD (Bill Discounting backed with LC), CBD (Clean Bill Discounting), DBD (Drawee bill discounting) and IBD (Invoice bills discounting).

Bill Finance constitutes a vital part of the working capital finance and is a major Trade Finance activity.

Bill Discounting Features
Invoice Discounting Features

Capability to handle large number of invoices through special software