Summary
Bill Discount is the transaction that the Bank purchases the promissory note, which has been issued as a result of trade of goods and services and endorsed for transfer,
before maturity from the holder upon deducting interest and other expenses.
Product Background
- - Difficulty in financing of working capital due to inability to encashment of sale proceeds in a timely manner.
Expected Benefit
- - Encashment of sale proceeds received in the form of promissory note when necessary.
Transaction Terms
- - Companies holding the promissory note received as sale proceeds
- - Account receivable occurred from sale
Eligible p-Notes
- - True promissory notes with underlying actual commercial trade only, which is verified by evidencing documents to be collected at the time of discount
Ceiling for Discount
- - Established in consideration of sales, actual account receivable, and ceiling for discount at other banks for one year in the past and another year in the future
Discount Interest Rate
- - Determined in consideration of discount period, contribution to the Bank, and creditworthiness of issuer of the promissory note, etc. In case of the promissory note issued by the company acceptable to the Bank, bill discount will be offered without collateral pledged.
Required Documents
- - Document evidencing commercial trade such as Tax Voucher, etc.
Other Information
- - Comparatively lower interest rate will be available under the support program for SMEs by government.
