Discounting Bill of Exchange | Meaning-Cum-Process

Discounting of Bill of Exchange

Goods or services are bought generally on credit whether it is traded locally or internationally. Therefore, maintaining a positive cash flow becomes a major challenge for suppliers.

Potential Buyers always demand trade credit from sellers while purchasing goods or services. Hence, discounting bill of exchange facilities the suppliers in the management of short-term capital for their business.

This article elaborates what exactly discounting of bill or bill discounting is and how does it work?

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