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LC DISCOUNTING (EXPORT / DOMESTIC)
What is LC Discounting?
Under this facility, SBIGFL discounts the LC's of prime banks acceptable to SBIGFL. SBIGFL offers this facility in combination with its basic factoring facility.
Product Features -
- Financing the seller upto 100% of LC Value
- Maintenance of accounts relating to accounts
receivables (A/R)
REVERSE FACTORING OR PURCHASE BILL DISCOUNTING
Reverse factoring is the discounting of suppliers' bills in respect of the client's regular purchases from them. SBIGFL assesses and considers only regular suppliers of the client having a relationship of minimum 6 months. Suppliers have to be pre approved by SBIGFL.
Product Features -
- Financing the supplier by prepaying upto 100% of the invoice value/ Bill value
- Credit of upto 120 days
CHANNEL FINANCING
The product enables our clients to discount their receivables on account of supplies made to all their Dealers. SBIGFL sets up a line of credit aggregating sub-limit for each Dealer and funds the clients within the set limits for supplies to the Dealer. On the due date, the payment is received from the Dealer.
Channel finance ensures the immediate realization of sales proceeds, making it practically a cash sale. On the other hand, the Dealer gets credit for a pre decided tenor sanctioned by SBIGFL, enabling smooth liquidity management.
Product Features -
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Financing the seller by prepaying upto 90% of the invoice value/ Bill value
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Protection against default in payment by the dealer
- Collection of receivables
- Maintenance of accounts relating to accounts receivables (A/R)
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