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Purchase Bill Discounting

Bank Name Min Interest Rate Processing Fee Foreclosure Charge Max Tenure (Month) Chances of Loan Approval
18.00% 1% 2% 60
8.00% 1% 2% 60
10.00% 1% 2% 60
18.00% 1% 2% 60
Apply Now EMI Calculator Eligibility Criteria Documents Check List FAQs
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Eligibility Criteria

What you mean by Purchase bill discounting Eligibility Criteria?

When you are facing trouble in managing business cash flow due to lack of stuck bill, get use of collateral free working capital for day-to-day business operational expenses, where you just need to pay some percentage of actual payment as a fee to lender.

Purchase bill discounting Eligibility Criteria

  • • Sales order must be raised by the concerned customers
  • • Invoice must be raised by the customer for the specific payment pending
  • • Must mention the exact date of outstanding payment to be made
  • • Minimum existence of business should be 10 months
  • • Credit score above 650
  • • Age Limit of Individuals – 24 to 65 years of age

Note: - You can avail Up to 90% of actual invoice receivable as a loan amount.

What are the benefits of availing Purchase bill discounting?

Never wait for unpaid invoice payment to take place, As the fail to meet new projects chances increases, unleash the power of invoice discounting It would be a great way to generate business cash flow on immediate basis.

Immediate access to cash flow: - If you’re getting multiple new projects at the same time when you’re existing invoice payment doesn’t taken place, at that time you require immediate fund to work on those new projects, wherein bill discounting is the only ways of acquiring funds.

Nil effect on balance sheet: - Many of us have fake illusions that by acquiring bill discounting it will effect on balance sheet, but on reality there is no such thing happens even not a single effect take places on balance sheet as borrowing this facility is totally off sheet counted.

Effortless obtaining: - Getting purchase invoice discounting is more effortlessly accessible than compared to other loans application process where you required to fill form & go through various domentation procedures to avail loan, but invoice discounting feature allows you to get fund in very effortless manner.

Documents Required

INDIVIDUAL
  1. PHOTOGRAPHS 2

  2. PAN CARD COPY

  3. AADHAR CARD + PASSPORT

  4. ADDRESS PROOF IF RENTED ALSO REQUIRED PERMANENT ADDRESS PROOF

  5. LAST 3 YEARS FORM -16, ITR WITH COMPUTATION OF INCOME IF FILE

  6. LAST 1 YEAR BANK STATEMENT - SALARY ACCOUNT

  7. LOAN SCHEDULE & SANCTION LETTER (IF RUNNING)

  8. COMPLETE PROPERTY PAPERS WITH CHAIN & MAP +ATS

  9. PROCESSING FEE CHEQUE IN FAVOUR OF BANK

  10. BRIEF HISTORY OF COMPANY

  11. COPY OF ISO 9001:2000 CERTIFICATE / FACTORY ACT REGISTRATION /IEC CODE REGISTRATION PARTY WISE SALES IN LAST 12 MONTHS

  12. RECENT TRAIL BALANCE (INCLUDING CREDITORS & DEBTORS)

  13. LATEST CUTOMER AGING –LISTING ALL THE CUSTOMERS (NOT ONLY THE PROPOSED FACTORALE ONES)

  14. FOR EACH PROPOSED FACTORABLE CUSTOMER => INVOICE + PURCHASE ORDER + SHIPPING DOCUMENT /POD + REMITTANCE ADVICE .THE SETS OF DOCUMENTS MUST RELATES TO THE SAME INVOICE .AT LEAST 6 SETS (TRANSACTION) RELATES TO DIFFERENT MONTHS FOR EACH PARTY

  15. LAST 3 MONTHS SALARY SLIP + APPOINTMENT LETTER

PROP FIRM
  1. PHOTOGRAPH BOTH

  2. PAN CARD CLEAR COPY PROPRIETOR

  3. ADDRESS PROOF (PASS PORT, VOTER ID CARD) PROPRIETOR

  4. OFFICE ADDRESS PROOF LATEST. (ELECTRICITY BILL, TELEPHONE BILL)

  5. FIRM REGISTRATION CERTIFICATES & GST REGISTRATION COPY

  6. LAST 1 YEAR GST RETURN COPY

  7. FIRM 3 YEARS ITR COMPUTATION, PROFIT LOSS A/C, BALANCE-SHEET, TAX AUDIT REPORT, ALL SCHEDULED & ANNEXURE

  8. PROVISIONAL FINANCIAL AY 2019-20

  9. BANK ACCOUNTS (CURRENT ACCOUNT, CC ACCOUNT, OD ACCOUNT LAST 1 YEAR UPDATED)

  10. IF RUNNING ANY LOAN PLEASE PROVIDE SANCTION LETTER AND REPAYMENT SCHEDULED

  11. AGREEMENT TO SELL COPY

  12. PROPERTY PAPERS WITH CHAIN SANCTION MAP

  13. BRIEF HISTORY OF COMPANY

  14. COPY OF ISO 9001:2000 CERTIFICATE / FACTORY ACT REGISTRATION /IEC CODE REGISTRATION PARTY WISE SALES IN LAST 12 MONTHS

  15. RECENT TRAIL BALANCE (INCLUDING CREDITORS & DEBTORS)

  16. LATEST CUTOMER AGING –LISTING ALL THE CUSTOMERS (NOT ONLY THE PROPOSED FACTORALE ONES)

  17. FOR EACH PROPOSED FACTORABLE CUSTOMER => INVOICE + PURCHASE ORDER + SHIPPING DOCUMENT /POD + REMITTANCE ADVICE .THE SETS OF DOCUMENTS MUST RELATES TO THE SAME INVOICE .AT LEAST 6 SETS (TRANSACTION) RELATES TO DIFFERENT MONTHS FOR EACH PARTY

PARTNERSHIP FIRM
  1. PHOTOGRAPH PARTNERS

  2. PAN CARD - COMPANY, ALL PARTNERS

  3. ADDRESS PROOF - ALL PARTNERS (PASS PORT, VOTER I PAN CARD, ADHAAR)

  4. FIRM ADDRESS PROOF- LATEST ANY UTILITY BILL

  5. PARTNERSHIP DEED COPY

  6. GST CERTIFICATE

  7. GST RETURN LAST 1 YEARS

  8. 3 YEAR COMPANY ITR COI P/L A/C BALANCESHEET + AUDIT REPORT 3CB 3CD, ALL ANNEXXURS, SCHEDULED WITH C.A.CERTIFIED

  9. PROVISIONAL FINANCIAL AY 2019-20

  10. 3 YEAR.ALL PARTNER INDIVIDUALS ITR + COMPUTATION

  11. FIRM ALL A/C BANK STATEMENT 1 YEAR UPDATED

  12. ALL PARTNER SAVING A/C STATEMENT 6 MONTH

  13. IF RUNNING ANY LOAN – LATEST SANCTION LETTER + TRACK RECORDS OR REPAYMENT SCHEDULED

  14. AGREEMENT TO SELL COPY

  15. PROPERTY PAPERS COMPLETE CHAIN WITH MAP

  16. BRIEF HISTORY OF COMPANY

  17. COPY OF ISO 9001:2000 CERTIFICATE / FACTORY ACT REGISTRATION /IEC CODE REGISTRATION PARTY WISE SALES IN LAST 12 MONTHS

  18. RECENT TRAIL BALANCE (INCLUDING CREDITORS & DEBTORS)

  19. LATEST CUTOMER AGING –LISTING ALL THE CUSTOMERS (NOT ONLY THE PROPOSED FACTORALE ONES)

  20. FOR EACH PROPOSED FACTORABLE CUSTOMER => INVOICE + PURCHASE ORDER + SHIPPING DOCUMENT /POD + REMITTANCE ADVICE .THE SETS OF DOCUMENTS MUST RELATES TO THE SAME INVOICE .AT LEAST 6 SETS (TRANSACTION) RELATES TO DIFFERENT MONTHS FOR EACH PARTY

PVT.LTD
  1. ALL DIRECTORS PHOTOGRAPH

  2. CLEAR PAN CARD - COMPANY AND ALL DIRECTORS

  3. ADDRESS PROOF – COMPANY AND DIRECTORS

  4. LIST OF DIRECTOR& SHARE HOLDER WITH CA CERTIFIED AS ON DATE

  5. MEMORANDOM ORDER IN HAND AND COMPLETE COPY (IF APPLICABLE)

  6. GST, SALE, VAT AND SSI REGISTRATION CERTIFICATE

  7. 1 YEAR GST RETURNS

  8. ALL DIRECTORS INDIVIDUALS ITR & COMPUTATION LAST 3 YEARS

  9. LAST 3 YEARS COMPLETE FINANCIAL WITH TAX AUDIT REPORT AND ANNEXURE

  10. PROVISIONAL FINANCIAL FY 2019-20 OR MONTH WISE SALE FIGURE LAST 1 YEAR

  11. COMPANY ALL BANK ACCOUNT STATEMENT 1 YEAR UPDATED

  12. ALL DIRECTORS SAVING A/C STATEMENT 6 MONTH

  13. IF RUNNING ANY LOAN – LATEST SANCTION LETTER AND REPAYMENT SCHEDULED

  14. AGREEMENT TO SELL COPY

  15. PROPERTY PAPERS COMPLETE CHAIN WITH SANCTION MAP

  16. BRIEF HISTORY OF COMPANY

  17. COPY OF ISO 9001:2000 CERTIFICATE / FACTORY ACT REGISTRATION /IEC CODE REGISTRATION PARTY WISE SALES IN LAST 12 MONTHS

  18. RECENT TRAIL BALANCE (INCLUDING CREDITORS & DEBTORS)

  19. LATEST CUTOMER AGING –LISTING ALL THE CUSTOMERS (NOT ONLY THE PROPOSED FACTORALE ONES)

  20. FOR EACH PROPOSED FACTORABLE CUSTOMER => INVOICE + PURCHASE ORDER + SHIPPING DOCUMENT /POD + REMITTANCE ADVICE .THE SETS OF DOCUMENTS MUST RELATES TO THE SAME INVOICE .AT LEAST 6 SETS (TRANSACTION) RELATES TO DIFFERENT MONTHS FOR EACH PARTY

FAQs

Frequently asked questions (FAQ) pages are Q&A-style pages that most brands build to answer queries that slip through the cracks. FAQs are targeted to give a complete sense of query satisfaction to the client.

What are the document required for LC Discounting?

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  • Bill of exchange 
  • Commercial invoice and packing list 
  • Transport documents 
  • Delivery challan 
  • Acceptance from issuing bank 
  • Discounting request letter

Is getting a LC Discounting is good or bad?

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It considered to be good way to strengthen business liquidity.

What is LC Discounting?

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Letter of Credit Discounting is an ideal way of financing. The various financial institution offers facility where it provides the guarantee of money be paid to seller if buyer default to pay the sum of amount.

What is the current Interest Rates of LC Discounting?

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LC Discounting charges starting at 6.00% onwards.

How Letter of Credit Discounting works on?

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Sellers request a Letter of Credit from buyer before the goods get delivered, seller wants the guarantee of money to pay on time without any default. Follow Below mentioned workflow of lc discounting: - 

  • Buyers approach the issuing bank to get LC 
  • Seller used to submit required document to get discount 
  • As per the terms money should be used to order or purchase goods only 
  • Finally, the amount will be credited

What are the types of LC Discounting?

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Usually, there are 5 types of Letter of Credit Discounting as below given: - 

  • Revocable 
  • Irrevocable 
  • Transferable 
  • Confirmed 
  • Unconfirmed 

What are the key features of Letter of Credit Discounting?

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Through the facility seller get able to lower the risk & respectively increases payment guarantee. 

This type of advance payment helps in getting working capital which enhance good quality took place as the cash flow of business is strong.

Who are eligible for LC Discounting?

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Any company whether it’s a proprietorship/private limited/partnership company. Business minimum continuity should be 5 years & turnover should be 100 crores.

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