This occurs when a bank quotes a rate for a bill on a discount basis - that is the bank takes an immediate top slice of the bill and pays the balance to the exporter. Of course the bank will retain the right of recourse against the exporter. Bills bearing a bank acceptance or with a guarantee or aval endorsement may be discounted without recourse.
This material has been provided courtesy
of Obrico Ltd Global Trade & Finance.
|Home||-||Trade Guide||-||Fun Section||-||E-mail me!||-||Internet Marketing||-||Interesting Sites|