Benefits Of Using Bill Discounting

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Benefits Of Using Bill Discounting
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Bill discounting is a process in which
short-term advances are extended in lieu of
unpaid sales receivables. Since the tenure is
very short, it is particularly beneficial to
companies looking to raise working capital
without getting involved in long- term credit
options.
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Increased Cash Flow
AS MOST OF THE MSMES DEPEND ON THE
PAYMENT FROM THEIR CUSTOMER TO GET STARTED WITH
NEW ASSIGNMENTS, ACCESS TO QUICK WORKING CAPITA
L IS CONSIDERED A KEY TO SUCCESS. AS SUCH, BILL
DISCOUNTING PRESENTS BUSINESSES WITH AN OPTION T
O PROCURE WORKING CAPITAL THAN APPLYING FOR FORM
AL BUSINESS LOANS. SINCE THE BILL
DISCOUNTING PROCESS INVOLVES USING A COMPANY
S UNPAID INVOICES AS COLLATERAL,
IT ACCELERATES CASH INFLOW, ULTIMATELY
BENEFITING THE COMPANY IN INCREASING SALES, PURSU
ING GROWTH, PROCURING EQUIPMENT, AND MORE.
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Speedy Access To Cash

• AS COMPARED TO CONVENTIONAL FINANCIAL
  INSTRUMENTS, INVOICE DISCOUNTING IS A
• MUCH FASTER AND EASIER MODE TO GET
• ACCESS TO WORKING CAPITAL AS IT DOESN T
  INVOLVE THE STRINGENT DOCUMENTATION
  PROCESS. IT SPEEDS UP CASH INFLOW,
• ALLOWING THE BUSINESS TO FOCUS ON
  GROWTH AND EXPANSION.

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No Debt Is Incurred
BILL DISCOUNTING OMITS THE BUSINESS TO INCUR ANY D
EBT AS A BUSINESS CAN GET CASH
BY RELEASING FUNDS LOCKED IN THE FORM OF
UNPAID INVOICES. AS SUCH, THE CHANCES OF
THE COMPANY INCURRING LOSSES ARE LESS AS
COMPARED TO TRADITIONAL FINANCING SYSTEMS.
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Zero Collateral Involved
IN BILL DISCOUNTING, THERE S NO NEED TO
KEEP ANY ASSET ( MOVABLE OR IMMOVABLE) AS
COLLATERAL. THE UNPAID INVOICE ACTS AS A COLLATERA
L.
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THANK YOU
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