Bill discounting meaning in tamil
The difference between the bill amount and the amount paid is the fee of vaja promo code the invoice discounting company.
Definition / Meaning of Bill Discounting or Invoice Discounting.
Cheques Discounted - Outstanding cheques/drafts drawn on our bank or other banks are purchased and immediate credit is afforded to your business account less our discount/commission.When a bill of exchange is first issued it is usually purchased (i.e.This party is paid the amount specified on the bill of exchange by the drawee.Obviously, the charge may be little more.It can be an expensive form of financing compared to other modes of financing such as bank overdraft etc.
The business gets the cash instantaneously giving business cycle a better momentum.
This depends on the business policies of the banks and financial institutions engaging in the discounting business.
The invoice discounting is an easy way of getting finance.
Our currency is a bill of exchange for example.Also see: bank bill in Hindi, support, keep in Touch.Business Banking, domestic Finance, working Capital finance, bill Purchase / Discounting.By accepting, the buyer acknowledges paying on the due date.Suppose there are two sister companies A B, A draws bill on B without any judicious transaction.If interest is to be paid, then the percentage interest rate is stated on the document.You may contact our nearest branch for more details.