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BILL DISCOUNTING OR INVOICE DISCOUNTING

Bill Discounting or Invoice Discounting

Hero FinCorp Bill Discounting or Purchase Invoicing Finance enables enterprises fast track growth by ensuring business liquidity on easy affordable terms

Eligibility & Documentation

Eligibility

  • Public, Private, Proprietorship or Self-employed
  • Minimum 3 years in current business
  • Business profitability as per industry norms
  • Satisfactory credit score

Documentation

  • Last 3 years audited financial statements and projections
  • Profiles and KYC of Directors and Partners
  • Company constitution documents and registration certificates

BILL DISCOUNTING OR INVOICE DISCOUNTING

Loan amount of Bill Discounting Finance up to 80% of the invoice value.

Instant liquidity with loan against receivable payments.

Fast Disbursal at attractive interest rates with minimal documentation.

No Collateral for high credit rated entities.

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WHY TO CHOOSE BILL / INVOICE DISCOUNTING

  • Higher business efficiency: Bill discounting gives the guarantee of higher business efficiency, as it provides quick access to capital for business necessity at the right time and you won’t have to pledge any asset.

  • Improves Cash Flow: Bill discounting or Supply Chain finance delivers an improved cash flow for your business entity, since a higher percentage of the advance receivable can be transformed into cash; thereby assisting in shorter working capital cycles.

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BUSINESS BENEFITS FROM INVOICE DISCOUNTING

  • Healthy cash flow and business growth: Bill discounting finance ensure a healthy cash flow since it converts your invoices into cash, which you can invest in your business instead of worrying about insurance against bad debts.

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  • Higher business flexibility: Purchase invoice finance or Supply Chain finance provides higher business flexibility as the cash flow becomes steady and there is no dependence on customers for working capital needs.

  • Easy invoice management: While availing the invoice discounting loan, your invoices get sorted and updated automatically, which can also help in paying taxes.

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LOAN FEATURES AND DOCUMENTATION

    Maximum tenure for Invoice discounting finance is of 120 days with interest rate ranging from 11% to 14%. 7 to 10 days are required for application processing. Documents needed are:

  • Address proof and PAN card

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  • Bank statement of last 6 months

  • IT returns of last 2 years and audited financials of last 2 years

  • Projections of next 1 year and latest shareholding pattern

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HOW TO AVAIL BILL DISCOUNTING/ INVOICE DISCOUNTING

  • As a first step, necessary document submission with KYC is required.

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  • Financials, credit score, & eligibility is evaluated.

  • After successful evaluation, sanctioning or approval for loan disbursal is provided.

  • Loan is finally disbursed after examination of legal and valuation reports.

  • Proper Follow-up is carried out for optimal customer service.

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    FREQUENTLY ASKED QUESTIONS (FAQS)

    Q1. What is an SME Loan or SME Finance?

    SME loans are specially designed loans for SME’s and small businesses. They are designed to be in sync with the unique requirements and operating constraints which small businesses encounter during various phases of their business.

    Q2. Can moratorium period be allowed under this scheme?

    Yes, moratorium period is allowed under this scheme, though the maximum period should not exceed 96 months.

    Q3. What is Loan-to-Value or LTV Ratio?

    LTV or Loan to Value ratio, is ratio of the loan amount to the realizable value of the underlying asset or security.

    Q4. Is there any pre-payment penalty?

    Yes. A small percentage of limit will be charged as pre-payment penalty.

    Q5. What is ECS?

    ECS stands for Electronic Clearance Service, and it is used to electronically transfer money between bank accounts, and is commonly used for making monthly EMI payments.

    Q6. What is the usual repayment method for these loans?

    The usual repayment methods include PDC, ECS, and more.

    Q7. For what purposes can these loans be taken?

    These loans are available for buildup of current assets, fixed assets, capacity expansion, modernization and short term working capital including shoring up of net working capital.

    Q8. Are balance transfer or loan BT cases considered?

    Yes. Loans can be availed through transferring an existing loan from other banks, NBFCs or financial institutions.

    Q9. What is the range of tenor available with these loans?

    You can avail this loan for a period starting from 12 to 84 months or 1 to 7 years.

    Q10. Are there any Foreclosure and Part/ Pre-payment charges?

    We offer pre and part payment facility at a very nominal charges. The amount charged may vary by sub-product and/ or location.

    Q11. What are the typical business requirements for which business loans are given out?

    Typical business requirements include new product launch, warehousing needs, expansion to new locations, entering new product categories, hiring new employees, marketing and many more such business related needs.

    Q12. How to get financing / business loans for a small business?

    Hero FinCorp provides loans to address the financing requirements of SMEs. We help SMEs with financing solutions which are user-friendly and can be adapted to the unique needs and requirements of SMEs & Small Businesses operating in India.

    Q13. What are the documents required to avail a commercial loan?

    The documentation requirement for availing corporate loans or loans for commercial purposes, vary by product, location and entity type.

    Q14. How should you prepare to get a small business loan quickly?

    The loan application process can be a lot simpler if one keeps the following in mind: 1. Update your financial records, 2. Know the value of your assets, and 3. Keep your banking/ financial statements handy.

    Q15. How do I reach out to Hero FinCorp for a loan?

    Fill in our Apply Now form on our website followed which we will get in touch with you or you can also call us on 1800-103-5271 or write to us at corporate.care@herofincorp.com.

    Q16. How much loan can I avail? How is the amount decided?

    The maximum eligible loan amount is decided based on your requirement, credit assessment, industry outlook, past performance and expected future cash flows.

    Q17. Which bills are accepted for discounting?

    Sales bills which are billed to reputed OEMs and companies are accepted for discounting.

    Q18. What can be accepted as security/ collateral?

    A wide range of securities are accepted. The includes properties such as land & real estate; equipment such as plant & machinery; Fixed Deposits, Deposit Certificates, Kisan Vikas Patra, National Savings Certificates, securities issued by Central and State Governments, gold and other cash equivalents; life insurance policies; and others. Please note the applicability of the above depends upon the overall assessment of the borrower.

    Q19. How long does it take to get the loan?

    It takes 10-15 working days to process the loan provided everything is in order.

    Q20. Who should I contact in case of any problem or if I have a query?

    We have dedicated Relationship Managers for all corporate clients. You can get in touch with them if you have any queries about our products, services or in case of any issues regarding our loan application or approval process. Also, you can use the customer care section of this website to raise any query.

    Q21. Is there any impact on my credit score if I foreclose my loan?

    No, foreclosure of your loan will have no impact on your credit score. Once the loan is foreclosed the same will be reported to credit rating agency as closed.

    Avail from our wide variety of small business loans or SME finance options that include bill discounting, invoice discounting, working capital loan, machinery loan and project and acquisition financing. You can benefit from comfortable tenures, attractive business loans interest rates or SME loan interest rates, high loan-to-value or LTV ratio, fast approvals, proactive customer service, easy documentation, and transparent service. As far as eligibility for invoice discounting, working capital loans and machinery loans is concerned, your business must be public, private, proprietorship or you must be self-employed. You should have been in your present business for at least 3 years and have a satisfactory credit score. To avail small business loan in India, your business should also be profitable as per industry standards. The documents you need to submit include KYC and profiles of partners and directors, registration certificates as well as company constitution papers. You will also need to provide audited financial statements and projections of the last 3 years for a business loan. If everything is in place, it usually takes 10 to 15 working days to process loans. The amount of invoice discounting, working capital loans or machinery loans you can receive and the business loans interest rates depends on the assessment of your company and credit, and your need. As security for small business loans, you can provide land, building, equipment, deposit certificates, fixed deposits, NSC, gold, life insurance policies and so on.

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