Discounting of bills under letter of credit

SBI Factors Limited (SBI Factors) offers a secure and efficient solution through its Discounting of Bills Under Letter of Credit facility. This financial service caters to both domestic and export transactions, providing immediate liquidity to clients. Backed by verified LC documents, the facility ensures that seller receive up to 100% of the LC value, reducing cash flow gaps and mitigating credit risks.

What is Discounting of LC?

Discounting of LC, or LC discounting, is a process where seller receives upfront payment against a letter of credit issued by a buyers bank. This service is particularly beneficial for exporters, helping them unlock working capital promptly.

Key Features of SBI Factors LC Discounting Facility

1. Upto 100% Financing: Receive up to 100% of the LC value, ensuring immediate cash flow.

2. Accounts Receivables Management: SBI Factors maintains accurate records of receivables under LC transactions, ensuring transparency.

3. Verified LC Documents: Disbursement is made after verifying the authenticity and acceptance of LC documents by first-class banks.