What are the document required for LC Discounting?
- Bill of exchange
- Commercial invoice and packing list
- Transport documents
- Delivery challan
- Acceptance from issuing bank
- Discounting request letter
| Bank Name | Interest Rate | Processing Fees | Foreclosure Charge | Maximum Tenure (Month) | |
|---|---|---|---|---|---|
|
18.00%
|
1%
|
2%
|
60
|
|
|
8.00%
|
1%
|
2%
|
60
|
|
|
10.00%
|
1%
|
2%
|
60
|
|
|
18.00%
|
1%
|
2%
|
60
|
|
| Bank Name | Min Interest Rate | |
|---|---|---|
|
|
18.00% |
|
|
|
8.00% |
|
|
|
10.00% |
|
|
|
18.00% |
|
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.
Note: - You can avail Up to 90% of actual invoice receivable as a loan amount.
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.
What are the document required for LC Discounting?
Is getting a LC Discounting is good or bad?
It considered to be good way to strengthen business liquidity.
What is LC Discounting?
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?
LC Discounting charges starting at 6.00% onwards.
How Letter of Credit Discounting works on?
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: -
What are the types of LC Discounting?
Usually, there are 5 types of Letter of Credit Discounting as below given: -
What are the key features of Letter of Credit Discounting?
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?
Any company whether it’s a proprietorship/private limited/partnership company. Business minimum continuity should be 5 years & turnover should be 100 crores.
Want to get financial service? Advise by CA Vikas Jain
CA Vikas Jain - Chief Advisor
Mr. Vikas Jain is a reputed Chartered Accountant possessing in-depth understand...
Read MoreCA Vikas Jain - Chief Advisor
Mr. Vikas Jain is a reputed Chartered Accountant possessing in-depth understand...
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