Purchase Bills Discounting & Channel Financing

These 2 Best Payment Options That Let Your Business Enjoy Credit Period For Your Purchases

The Need for working capital is must, when Business needs to pay for material which they buy from suppliers. To make an Immediate payment for Purchases businesses look for better short-term finance option.

Purchase Bills Discounting and Channel Finance can emerge as an early payment option for those Buyers who want to pay their suppliers on time and get benefited by having longer credit period

What is Purchase Bills Discounting and How it Works For Buyers?                 

In Purchase Bills Discounting, Buyer, seller and Investor these 3 parties are involved. Investor makes payment on behalf of buyer to the seller of the goods. For the payment, buyer asks seller to draw BoE(Bills of Exchange) so it can be accepted for payment to the Investor at later date. After receiving BoE, Investor Instantly make payment to the supplier, so buyer doesn’t need to pay the seller anymore. The buyer is liable to pay the Investor on the due date. Buyer can have generally up to 120 days of credit period to make his payment, this process called as Purchase Bills Discounting. It helps the buyer to make payment on the preferred date on which he pays to the Investor. Eligibility for Purchase Bills Discounting depends on the financials and credit rating of the Buyer. It would be a quick and easy way to raise short-term finance, which has the ability to improve the cash flow of business. Purchase Bills Discounting can be useful to the business entrepreneurs, SME business and Manufacturer who are looking for source of collateral free working capital.

Why Choose Purchase Bills Discounting For Your Business?

To get quick access to funds in a short period of time, It could be a wise choice of any business. Purchase bills discounting is collateral free and hassle-free solution. It makes Purchase bills discounting as favorable option for early payments. Due to Investors, Businesses can enjoy a longer credit period which is up to 90 days. The most important reason to choose Purchase Bills Discounting is to improve and strengthen cash flow of the Business Enterprise.

This is how Channel Finance can help Businesses

Businesses who deal with large companies to purchase their raw material can get finance through Channel Finance. Such large companies wants payment immediately for their sales. At such crucial situation buyer can go for Channel Finance. The aim of Channel finance is to provide funds for immediate payment for buyer’s order. In the case of channel finance, buyer issues purchase order to large company. Payment of the order is fulfilled by investor, so now Buyer pays to Investor & not to the company from which he made purchases. Channel finance does cater to both forward and backward Supply chain linkage. It can work well with corporate and buyer for making payment to suppliers. Corporate or large companies can choose Channel finance to pay its suppliers. It can be used to bring working capital into a business.

Who Can be Beneficiaries of Channel Finance

A manufacturer who Buying Critical raw material from large conglomerates would go for channel finance, as it needs to make immediate payment. It can benefit business enterprises with a chain of distributors and dealers. Channel Finance can effectively be used by enterprises that get discount or concession on early payments for their purchases.

BillsDiscounting is a part of  Man Investment Group which provides working capital finance to large companies & SME business Enterprises and Short Term Investments with high returns opportunities to High net worth Individuals, private treasuries, private Investors, lenders, and financiers.

Visit www.billsdiscounting.com  for your business financing and Investing solution.

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