P/N discounting refers to the conversion of deferred promissory notes or bills into cash by the bank at a certain discount rate. Exporters or trading companies can access financing by discounting their receivables without waiting for maturity. In this financing, a promissory note is issued in which the correspondent bank abroad is the creditor and the importer company is the debtor, and our Bank provides an aval on the note. Our customers can use this financing for import letters of credit or other import payments.
Advantages:
- Enables early collection of receivables.
- Quickly meets the need for financing.
- The collection process of receivables is undertaken by the bank.
- Increases liquidity on the company’s balance sheet.