IDBI Bank Fund Based help offers both Purchase and Sale Bill Discounting and furthermore Invoice Discounting for OEM/sellers to substantial Corporates.

Under this kind of loaning, Bank takes the bill drawn by borrower on his (borrower's) client and pay him quickly deducting some sum as markdown/commission. The Bank at that point introduces the Bill to the borrower's client on the due date of the Bill and gathers the aggregate sum. On the off chance that the bill is postponed, the borrower or his client pays the Bank a pre-decided enthusiasm relying on the terms of exchange.

Bills are characterized into four classifications as LCBD (Bill Discounting upheld with LC), CBD (Clean Bill Discounting), DBD (Drawee charge reducing) and IBD (Invoice bills marking down).

Bill Finance constitutes an essential piece of the working capital back and is a noteworthy Trade Finance action.

Bill Discounting Features

IDBI Bank offers discounting of bills up to original tenor of 180 days
Bill discounting facility offered as Sale bill discounting or Drawee bill discounting
Bills under LCs issued by domestic banks/branches (LCBD) under simplified procedure

Invoice Discounting Features

Especially useful for OEM / vendors to large corporate
No bill of exchange / No acceptance
As an overdraft facility or bill discounting facility
FIFO method for interest calculation