Meaning, Factors and Best ways to Bill Discounting
Bill discounting is a source of working capital finance for the seller, who is providing goods on credit. It is an arrangement between the seller and a financial institution. Here the seller sells the sales bill to the institution before it becomes due. This institution would provide a discounted amount for holding on to the bill until it becomes due. Once due, the institution recovers the amount from the buyer. Generally, the bank or other institutions provide for 80% of the invoices, those are maturing within 90 days. In the world of start-ups, [...]
