Invoice discounting is the solution to the problem which creates a win-win situation. Why Invoice Discounting?
The recognized measure bears an irrevokable. There is two colored rows of keys that are used. Given the growth trajectory of this sector, there is little doubt that the banking system in the country has to.
This may lead us to think that something might have happened during the previous audits. The scheme was in vogue for well over 18 years. A bill of exchange is a negotiable instrument which is negotiable mere by endorsing the name. This time period can vary from two weeks to two months.
The Group recognizes that seller payment subject of a company is an index of the ethos of the direction of the company and is sine-quo-non for the development of measure civilization.
Operational and procedural hassles currently obtaining in banking system too are said to impede the growth of bill financing even amongst those business segments where it has found acceptance. Since the introduction of the New Bill market scheme, the RBI introduced several measures to encourage and widen the use of Bills such as, simplification of the rediscounting procedures, promotion of Drawee Bills Scheme, remission of Stamp duty on bills of exchange of three months tenor, selectively increasing the participants in Bill Rediscounting Market, setting up of the Discount and Finance House of India DFHIenabling multiple rediscounting of bills and delinking of prime lending rates of banks in respect of bill discounting facilities.
The problem has been decades in the making.
Given the past record and the standing of the service provider, the user may not have hesitation in accepting the bill; so also, the service provider may be willing to extend credit to user of the services, based on his past track record of payment.