Features
We provide extension of working capital finance to suppliers under LC or Invoice discounting.
We provide extension of working capital finance to suppliers under LC or Invoice discounting.
Facility is provided to Mid / Large corporates having turnover of Rs.500 Crores and above OR minimum exposure (Funded + Non Funded) of Rs.25 Crores
Period of the facility is upto 180 days
Sight Bill Discounting
Generally a documentary bill payable on demand tendered for purchase shall consist of the following:
- A Sight draft of the drawer to the value of the invoices of the respective goods consigned.
- Documents of title to goods covered by the bill viz. (a) Railway Receipt or (b) Lorry Receipt of an approved carrier or (c) Bill of Lading (Inland).
- Invoices or contract notes of Bills of sale in respect of the goods covered by the documents.
- Transit Insurance Policies, if they have been taken.
Usance Bill Discounting
Usance Bill is the one which is expressed to be payable after a specified period (Usance) mentioned in the bill. Usance bill may be a clean bill or may be
- accompanied by documents of title to goods evidencing dispatch of goods (Railways Receipt/Lorry receipt/ shipping documents)
- Usance Bill of Exchange
Invoice Bill Discounting
Under Invoice Financing, the lending bank agrees to purchase a company's outstanding invoices (debtors) which are payable over a period of time, on an ongoing basis, and then provides funding by way of pre-payment of invoice value of the approved debt.
Following documents are required:
- Original Invoice
- Undertaking from the Corporate Buyer agreeing to route the sales proceed to our bank
- Guarantee / Comfort letter from the corporate buyer
- Details of monthly / yearly sales to the buyer
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