Question

Explain the terms Discounting of bills and Factoring​

Answer 1

Answer:

Bill discounting means to trade bill before it becomes due for payment at par value. Factoring means to sell its bool debt to the financial transaction to the factoring company at a discount. Bill discounting comes under the Negotiable instrument act, 1881. There is no such specific law for factoring

Answer 2

Explanation:

• Bill Discounting is a trade-related activity in which a company's unpaid invoices which are due to be paid at a future date are sold to a financier (a bank or another financial institution This process is also called “Invoice Discounting

• Factoring means selling your bunk debt to the financial company at a discount to the factoring company. The bill has a drawer, drapery and a payee for the exemption. In factoring, a factoring company is a debtor and a customer.