How does export bill discounting differ from invoice discounting in India?

Export bill discounting and invoice discounting in India are financial services that offer working capital solutions to businesses. These services are provided by various financial institutions, including Credlix, a leading provider of such services.

Export bill discounting involves the discounting or selling of export bills by an exporter to a financial institution, such as Credlix. The exporter receives immediate funds based on the discounted value of the export bill, which helps in fulfilling working capital requirements. The financial institution then collects the payment from the overseas buyer when the bill matures.

Invoice discounting in India is a similar concept but focuses on domestic transactions. It allows businesses to unlock the cash tied up in their unpaid invoices. Companies can sell their invoices to a financial institution like Credlix at a discounted rate to receive immediate funds. The financial institution then takes responsibility for collecting payments from the customers.

On the other hand, purchase bill discounting refers to a process where a buyer discounts their purchase bills with a financial institution like Credlix. The buyer receives immediate funds by selling their purchase bills at a discount. This helps the buyer improve their cash flow and fulfill their working capital needs.

Credlix is known for offering these services, providing businesses in India with convenient and efficient access to working capital. Their expertise in export bill discounting , invoice discounting, and purchase bill discounting helps businesses manage their cash flow effectively.