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  • Bill Discounting Resource

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    manish jakhar
    13 views1 page
    Bill discounting is a process where a bank or financial institution pays a borrower immediately for a bill drawn by the borrower's customer, deducting some amount as a discount or commission. For example, if a company needs money for operations but does not have enough inventory, they can create a bill for their customer with the total delivery costs. Once approved, the company can show the bank and receive money, with the total costs to be paid by the buyer. The bank then collects payment directly from the buyer after delivering the products, keeping a commission for lending the money.

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    Bill discounting

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    Bill discounting is a process where a bank or financial institution pays a borrower immediately for a bill drawn by the borrower's customer, deducting some amount as a discount or commission. For example, if a company needs money for operations but does not have enough inventory, they can create a bill for their customer with the total delivery costs. Once approved, the company can show the bank and receive money, with the total costs to be paid by the buyer. The bank then collects payment directly from the buyer after delivering the products, keeping a commission for lending the money.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    13 views1 page

    Bill Discounting Resource

    Uploaded by

    manish jakhar
    Bill discounting is a process where a bank or financial institution pays a borrower immediately for a bill drawn by the borrower's customer, deducting some amount as a discount or commission. For example, if a company needs money for operations but does not have enough inventory, they can create a bill for their customer with the total delivery costs. Once approved, the company can show the bank and receive money, with the total costs to be paid by the buyer. The bank then collects payment directly from the buyer after delivering the products, keeping a commission for lending the money.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
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