Bill DiscountingHassle Free Get Your Invoice Paid

Bills Discounting
Invoice/Bill discounting can be technically defined as the selling of bill to bill’s discounting company before the due date of payment at a value which is less than the invoice amount. The difference between the bill amount and the amount paid is the fee of the invoice discounting company. The fee will depend on the period left before payment date and the perceived risk.It can be a local/domestic bill discounting or it can be a foreign bill discounting.

Bill Discounting is a product of Working Capital Finance.

Working Capital Finance

Each business has its own unique set of requirements so we have a dedicated team of experts who work with you to understand the specific nature of your business and structure solutions most suitable for you. We offer a complete bouquet of working capital facilities to help you manage your cash flow and ensure the smooth running of your business.

A working capital loan is a loan that has the purpose of financing the everyday operations of a company. Working capital loans are not used to buy long-term assets or investments and are instead used to cover accounts payable, wages, etc. Companies that have high seasonality or cyclical sales cycles usually rely on working capital loans to help with periods of reduced business activity.

Features and benefits:

  1. Quick and hassle-free process
  2. Customised and flexible financial solutions
  3. Customer-oriented services


The buyers and sellers of goods have conflicting objectives. The seller wishes to get paid immediately and the buyer wants as longer credit period as possible. Invoice discounting is the solution to the problem which creates a win-win situation. The seller gets his money almost instantly on payment of a small charge and is able to satisfy its customer with credit period. The invoice discounting is an easy way of getting finance. There are no hassles of sanctions etc.


The process of bill discounting is simple and logical.

The seller sells the goods on credit and raises invoice on the buyer.

The buyer accepts the invoice. By accepting, the buyer acknowledges paying on the due date.

Seller approaches the financing company to discount it.

The financing company assures itself of the legitimacy of the bill and creditworthiness of the buyer.

The financing company avails the fund to the seller after deducting appropriate margin, discount, and fee as per the norms.

The seller gets the funds and uses it for further business.

On the due date of payment, the financial intermediary or the seller collects the money from the buyer. ‘Who will collect the money’ depends on the agreement between the seller and financing company.


The business gets the cash instantaneously giving business cycle a better momentum. It allows an entrepreneur to do business without funds. This works like a bank overdraft, the borrower pays the interest only on the amount of money utilized. There is a tough competition in the market to extend such credit and hence there are a plenty of different products to suit the needs of the client. There are borrowers who even cover the risk of bad debt along with the service. Obviously, the charge may be little more.

Disadvantage OF BILL :

It can be an expensive form of financing compared to other modes of financing such as bank overdraft etc. In many countries like India, where the central bank encouraged the scheme of bill discounting and allowed a lower percentage of interest. But, it was not successful due to various misuses by financing brokers, banks etc.

How can we help you?

Contact us at the BizFin Service office or submit a business inquiry online.