Discount of trade bills is short-term financing granted by the Bank. The Bank purchases trade bill before its payment term at a price less the amount of discount interest. The Bank discounts bills submitted by the drawee which is creditor of the principal amount and holds a settlement account at Bank Millennium.
Discount of trade bills is available in two variants:
- as single transactions or
- under a discount loan, i.e. upon granting renewable credit limit for discount of a number of trade bills within 12 months. After repayment of the bill by counterparty, the available limit is released.
- You will gain a competitive edge, thanks to ability to offer your trade partners more attractive payment conditions with longer payment terms.
- You will improve your financial liquidity and economic ratios thanks to earlier receipt of your receivables.
- You may move from sales based on credit conditions (trade credit) into cash sales (discount).
- You mitigate risks related to debtors' defaults.