1. Deepak Jain- Plutus Consulting
Bill Discounting
1/15/2019
Deepak Jain- Plutus Consulting

2. Bill Discounting- Working Capital Without Security

3. What is Bill Discounting
While discounting a bill, the Bank/ NBFC buys the bill (i.e. Your usance bill for services/ products) 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.
The supplier of the goods gets his money due after 60/90/120 days immediately and the debtor shifts from his books to books of Bank/ NBFC and reduces his net working capital
1/15/2019
Deepak Jain- Plutus Consulting

4. Which Bills Are Discounted
Under certain circumstances, the Bank / NBFC may discount a bill . The amount the Bank advances to you also depends on your past record and reputation of the buyer.
A bill must be a usance bill
It must have been accepted by buyer
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
1/15/2019
Deepak Jain- Plutus Consulting

5. Deepak Jain- Plutus Consulting
Process
The Supplier applies for setting limit for buyer for bill discounting.
Supplier needs to get a Master letter singed from buyer.
Once limit is set and master letter duly singed is submitted to Bank / NBFC the bills are ready for discounting.
Your next supplies/ service bills are drawn and accepted by buyer these needs to be submitted to Bank/ NBFC
Bank / NBFC will scrutinize and transfer money in supplier account after deducting discounting charges( interest) for usance period.
Process Cont..
1/15/2019
Deepak Jain- Plutus Consulting

6. Deepak Jain- Plutus Consulting
Process Cont..
On the due date of discounted bill, the buyer needs to pay the entire sum towards the bill to Bank/ NBFC instead of supplier.
This completes the transaction and series of bills can be drawn and discounted against the sanctioned limit.
1/15/2019
Deepak Jain- Plutus Consulting

7. Deepak Jain- Plutus Consulting
About Plutus
Plutus Consulting is effort for providing solutions to SME businesses and in particular BFSI space focused on NBFC, Plutus is committed to work with their clients closely, understand their needs and problems and provide the most productive and cost effective solutions.
Sole purpose of Plutus is to provide need based solutions to organization.
Plutus has been founded by Deepak Jain who has 35 years of extensive experience with over 15 years in senior management as Business Head / CEO with a proven record of establishing cross functional partnerships to deliver stellar results.
He has spent 29 years in NBFC space covering Retail Finance, Business Development, Creating Distribution Channels, Credit & Risk Monitoring, NPA resolution ,Collection and Legal , Accounting and Taxation. 
1/15/2019
Deepak Jain- Plutus Consulting

8. Deepak Jain- Plutus Consulting
Plutus Advantage
Plutus is a financial consulting making things easy for you.
We can help you in fixing your bill discounting limit and let you leave to deal with Bank/ NBFC of your own. OR
Our back office team will work with you closely in getting your bills, getting them discounted and ensure money is transferred in your account.
Our back office will also follow with your buyer to ensure payment is remitted on due date to Bank/ NBFC timely.
1/15/2019
Deepak Jain- Plutus Consulting

9. Deepak Jain- Plutus Consulting
315, Ocean Plaza,
Sector 18,
Adjacent to Sector 18 Metro Station
Noida
1/15/2019
Deepak Jain- Plutus Consulting