Invoice Discounting

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What is Invoice Discounting?

Is your cash tied up in your outstanding invoices? Giving credit to your customers for a longer period could hamper the regular cash flow of your business. With Tata Capital Invoice Discounting solutions, get early payments against your outstanding invoices. Purchase Invoice Discounting will save your business from the cash flow pressure while giving you some breathing space.

We help your business manage late payments and keep up with seasonal demands. By taking advantage of invoice discounting facility, you can ensure the growth your business deserves, and even perform well in periods of turbulent financial times.

Invoice Discounting is available from Tata Capital for vendors dealing with selected Corporates only which are approved by Tata Capital.

Rates and Charges

Particulars	Invoice Discounting
Customer ROI	9.00% - 21.00%
Processing Fees	Minimum 1% of Sanctioned Amount
Stamp Duty	As per Stamp Duty Circular, Varies from State to State
Foreclosure Charges	Upto 6%

Penal Charges

(i) Default in payment of interest and/or principal amounts @ 24% p.a. on the defaulted amount
(ii) Dishonour Charges: Rs. 670/- (Rupees Six Hundred and Seventy only) for every Cheque/ Payment Instrument/ ECS Dishonour.
(iii) Non-creation/perfection of security: @ 2% on the outstanding principal amount will be charged for the period of delay in respect of delayed/non-submission of security/collateral related documents and non-perfection of security.

*Charges to be paid along with applicable Tax

Schedule of Other Charges

Description	Periodicity	Penalty Amount
Delayed/non submission of stock statement	To be submitted Quarterly by 10th of every Calendar Quarter.	Additional one time charge of Rs 20,000/- per Quarter
Delayed First Insurance cover note and non renewal of Insurance on due date	First Insurance:- within 30 days from disbursement date. Renewal : as and when due	Additional one time charge of Rs 20,000/- per financial year
Non adherence of financial covenants’ of sanction letter	At the time of Review /Renew of account	Additional one time charge of Rs 20,000/- per financial year
Documentation charges	Rs 5,000/-
Stock Audit charges	Rs 5,000/-
ROC and CERSAI filling	Rs 5,000/-
Valuation charges	As per actuals
TSR fees / Title search fees	As per actuals
Security trust fees	As per actuals

Charges to be paid along with applicable Tax

Invoice Discounting Features & Advantages

Here’s why you should choose Tata Capital to avail Invoice Discounting for your business:

Improves cash flow / liquidity of your business

Monetizes receivables stuck in unpaid invoices with Corporates

Reduces dependence on Local Bank

No collateral required

Competitive Pricing – Leveraging on Corporate’s credit rating

Simple standard documentation process

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