Bill Discounting While discounting a bill, the Bank buys the bill (i.e.

Bill of Exchange or Promissory Note) before it is due and credits the value of the bill after a discount charge to the customer's account. The transaction is practically an advance against the security of the bill and the discount represents the interest on the advance from the date of purchase of the bill until it is due for payment.

Under certain circumstances, the Bank may discount a bill of exchange instead of negotiating them. The amount the Bank advances to you also depends on your past record and reputation of the drawee. Usually, the Bank may want some conditions to be fulfilled to be able to discount a bill:

A bill must be a usance bill It must have been accepted and bear at least two good signatures (e.g. of reputable individuals, companies or banks etc.) The Bank will normally only discount trade bills Where a usance bill is drawn at a fixed period after sight, the bill must be accepted to establish the maturity The advising or confirming bank will hide the reimbursement instruction from the beneficiary so that his bank must present the documents to the nominated bank for negotiation in order to obtain payment under the DC terms. Bills which are financed by the receiving branch, whether drawn under a DC or not, are treated as Bills Receivable by both the remitting branch and the receiving branches. Presenting a bill Bills may be presented to the nominated bank in two ways: 1. With recourse We check the documents and confirm that they comply with the DC terms, and send the bill with the original DC to the nominated bank requesting payment. The nominated bank need not recheck the documents and it can claim a refund from us in the case of an unspotted discrepancy. We pay our customer after receipt of funds from the nominated bank. Without recourse We pass the original DC and unchecked documents to the nominated bank on a collection basis, requesting payment. The nominated bank has to check the documents in the normal way. Usually, we present documents to the nominated bank without recourse:

2.

a. When the opening bank is a member of the Bank nominated for payment, acceptance or negotiation b.When the nominated bank has confirmed the DC c.When the nominated bank is the drawee If you have a good standing, we can give you an advance against an OBN bill. You will then have to repay the advance from the proceeds of the bill.

Finance Against Collection You as an exporter may ask the Bank for finance against a collection bill. Now, if your buyer will close the sale only if he gets credit, you may involve the Bank to arrange for the same. This will allow you to be flexible in the payment terms.

The remitting bank may finance a good creditworthy exporter by purchasing or discounting his collection bills under an "Export Line". However,

If the importer refuses a bill the Bank has purchased, the Bank must be sure of being able to get a refund. The importer must be reliable. The Bank usually tries to avoid the risk of refusal by keeping in touch with large banks. The Bank always ensures that when a bill is purchased, it is drawn on approved drawees within limits.

Export Bills Negotiation against Letter-of-Credit

What is Export Bills Negotiation against L/C?
After you have shipped out your cargo according to your customer's order, you will need to prepare your shipping documents according to the Terms & Conditions of the Export L/C given by your buyer. Once you are ready with your shipping documents, you have to send it to the bank for L/C Negotiation, and claim payment for your delivery. The bank will examine the documents presented according to the Terms & Conditions stipulated in the L/C, and claim reimbursement for you accordingly.

What benefits can you enjoy?

1. 2. 3. At Standard Chartered Bank, our experience and knowledge will help you to receive your L/C payment soonest possible. We offer you cash advance against your Export L/C negotiation at a competitive rate, which is one of the lowest in town. With additional cash on hand quicker, you are able to propel your business to the next level at an accelerated rate

The ICICI Bank offers a grand selection of banking products and financial services to its customers. Its clientele ranges from the corporate customers to the retail customers. At the moment the brand specializes in the following genres:

Investment banking Life and non-life insurance Capital endeavors Asset management Credit card facilities (In the realm of credit card services, the ICICI bank is renowned as the largest issuer of the same within the country)

Besides its domestic operations, its record of the international operations is equally impressive. It has its branch offices in over 18 destinations of the world including the UK as well as South Africa and Canada. The iMobile facility that enables the ICICI bankcustomer to operate his account with the bank through GPRS enabled cell phones is another feather on its grand cap.

Bills Receivable
Submitted by Anonymous on Wed, 08/05/2009 - 14:17

Tag:

Account Receivables /

A bill receivable is a document that your customer formally agrees to pay at some future date (the maturity date). The bill receivable document effectively replaces, for the related amount, the open debt exchanged for the bill. Bills receivable are often remitted for collection and used to secure short term funding. Oracle Receivables provides a comprehensive solution to managing the entire life cycle of bills receivable:creation, acceptance, remittance, updates, history, and closing. Creating Bills Receivable Oracle Receivables treats a bill receivable as a separate transaction. You can create bills receivable individually through the Bills Receivable window, directly exchange a completed invoice for a bill receivable in the Transactions workbench, or create bills receivable in batch using the Bills Receivable Transaction Batcheswindow or the Bills Receivable Batch Creation concurrent program. You can create signed, unsigned, and customerissued (promissory note) bills receivable. Remitting Bills Receivable You can remit bills receivable to a bank or factoring company using the Remittances window. Choose to factor remittances with or without recourse. Optionally print bills receivable as supporting documentation for the bank or for your own records. Run the Bills Receivable Maturity and Risk program and report to apply receipts and eliminate risk on remitted bills factored with recourse. You can further automate the creation of a remittance batch by using the inbound API.

Managing Bills Receivable Use the Bills Receivable Portfolio Management window as an analysis tool and to record changes to a bills receivable transaction. You can:

Record customer acceptance of a bill receivable Endorse a bill Manage risk associated with factored bills Mark a bill as unpaid or protested Cancel a bill Recall a bill from a remittance batch Exchange one bill for another Place or remove a bill on hold View bill details, including the current status View the life cycle of events for each bill Utilize folder functionality to meet your analysis needs

You can also review bills receivable transactions using the Collection and Receipt workbench features. To further automate the update of items not paid by a customer, you can choose to utilize the Unpaid Bills Receivable API. Notes: Bills receivable is same like the debtor the only and the minor difference between is while selling the goods on the credit we open the debtor account and when the debtor give bills in regards of the payment of the credit goods purchased we open the bills receivable accounts and if the bill is not matured on the due-date or dishonoured we again transfer the bills receivable in the debtors account