What is the effect discount?
El effect discount Commercial is a financial operation that is responsible for anticipating liquidity of a collection right that belongs to your business.
Said right has not yet been collected and an amount is deducted from its total amount, with the purpose of compensating that immediate endowment.
Through this procedure, the financial institution advances you the nominal amount defined in the commercial bill to be discounted without having to wait until the expiration date.
In this way, your company gets a fast financing without resorting to a traditional line of credit.
When is it convenient to resort to the discount of bills?
Small and medium-sized companies, as well as the self-employed who are looking for financing for commercial purposes Outside the scope of traditional banking, they are ideal profiles for this type of operation.
In general, the effect discount You will find it very useful in these circumstances:
- * When bank financing is not enough to cover the financial needs of your business.
- * When treasury gaps occur, which require fast and agile financing so as not to compromise the development of your activity.
This It is based on the face value of the invoice that gives rise to the commercial effect.
This amount will be reduced by discount interest, which will depend on the maturity of the promissory note and the credit quality of the payer.
Classification of current effect discounts
El effect discount It is a financial operation that provides liquidity to companies and the self-employed, based on the advance of a collection right of commercial origin, whose payment is instrumented through a promissory note or any other type of commercial effect.
Depending on the type of document, this operation receives a different name, however, the procedure and operation is similar.
check discount
It is a document that is equivalent to cash, since it is payable on sight by defining only an issue date.
For this reason, it is used check discount figure before a financial entity to manage your collection.
Commercial discounts
El commercial discounts It is a short term operation.
A financial institution can offer it to a client who has a credit title so that they advance the amount of the nominal that is not yet due.
In this way, the credit is assigned to said entity, which will be in charge of managing the collection.
The trade titles with which you can operate are promissory notes, direct debit payments, invoices and bills of exchange.
Invoice discount
This type of effect discount is another short-term source of credit.
SMEs and the self-employed regularly resort to this financial service, since it allows them to ensure their liquidity and maintain a cash flow adjusted to their payment obligations.
This system converts receivable invoices into liquid money available to the organization.
discount line
It is a financial product that consists of advancing the collection of various bills pending payment.
A financing limit is defined that is used over a period of time.
In this way, liquidity can be advanced automatically and with a certain periodicity.
Although this financial product is governed by the same guidelines as the discount operations, has a particularity.
It is not only a matter of discounting a single document, but rather a series of documents that will be discounted over time.
From WorkCapital We specialize in offering fast and transparent financing to SMEs and the self-employed.
In this sense, we provide you with a fast and effective service of effect discount to offer you immediate liquidity.
Our goal is to help you solve your working capital needs.
