BILL OF EXCHANGE DISCOUNT

Fast and easy to cash.

BILL OF EXCHANGE DISCOUNT

Fast and easy to cash.

WHAT IS A

BILL OF EXCHANGE DISCOUNT?

It is a short-term financing service, which simply and quickly collects receivables before the due date of the bill.

WHICH CONDITIONS MUST BE MET IN ORDER TO

DO DISCOUNT BILL?

  • Promissory notes must be issued based on overdue claims
  • Receivables must refer to creditworthy customers
  • Bills of exchange must be registered in the register of bills of exchange maintained by the National Bank of Serbia.

WHY CHOOSE

DISCOUNT BILL?

  • QUICK AND SIMPLE TO CASH
  • BETTER NEGOTIATING POSITION of the client in terms of credit policy and payment terms.
  • COST OPTIMIZATION OF THE CLIENT’S PROCUREMENT through advance payments to suppliers and the possibility of using cash register discounts and rebates.
  • INCREASE IN SALES of the client, through the possibility of giving the due currency of payment to the customers.
  • REDUCTION OF BUSINESS COSTS, through cost optimization of procurement and reduction of claims administration costs.
  • INCREASING THE PROFITABILITY OF THE CLIENT

HOW IS THE BILL DISCOUNT SERVICE REALIZED?

The promissory note discount service is realized through the form of the Classic Factoring Agreement with the note that the client endorses the promissory note in favor of the factor. The promissory note is transferred (endorsed) by the statement of the holder of the promissory note on the transfer of rights to the factoring company. The statement is given on the back of the bill. You can view an example of filling out a bill of exchange at the document link.

The procedure for the realization of the bill discount is identical to the realization of the Classic Factoring Agreement:

  • The factor and the client conclude the Classic Factoring Agreement.
  • The client endorses the promissory note on the factor.
  • The factor pays the client an advance.
  • On the due date of the promissory note, the factor, upon collection of the entire nominal amount of the promissory note, deducts the amount of advance payment, financing costs and pays the difference to the client.

WHAT IS THE PRICE OF THE DISCOUNT BILL?

Based on the concluded contract, the factor pays the client an advance of 60-95% of the claim amount and calculates the following costs:

  • FIXED COST – commission for the processing of the factoring transaction, calculated once as a % of 0.2-3% on the amount of the advance payment
  • VARIABLE COST – interest, calculated monthly on the amount of the unpaid claim in % of 0.2-3% on the amount of the unpaid claim.

WHAT FACTORS AFFECT FINANCING COSTS?

Unlike other factoring companies, we do not have a predetermined price list for our services. We foster a PERSONAL APPROACH TO THE CLIENT and we make the financing decision based on experience and financial assessment regarding PLACEMENT RISK ASSESSMENT.

If you have a question or want to apply for discount bill please contact us.