Bill Discounting in 4 Steps
What is Bill Discounting?
Finance Your Bills, Keep Your Customer Relationships
Bill Discounting is a short-term borrowing mechanism where Ocean Global Logistics advances cash against your accepted bills of exchange — the formal, legally binding payment documents your customers sign agreeing to pay by a specific date.
Unlike factoring, you remain responsible for collecting the payment from your customer when the bill matures. This makes Bill Discounting ideal for businesses that have strong, long-standing customer relationships and simply need bridge financing.
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Keep Relationships
You stay the primary contact for your customer.
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Competitive Rates
Discount rates benchmarked against market — negotiable for high volume.
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Quick Processing
Funds advanced within 48 hours of bill verification.
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Institutional Network
Bills handled through our bank and NBFC partner network.
Real-World Scenario
Bridging the 60-Day Gap Privately
The Problem: An established logistics provider handles the majority of shipping for a well-known retail brand. The retail brand requires 60-day credit terms, which the logistics provider has agreed to via a formal bill of exchange. However, the logistics provider needs immediate capital to cover warehouse leases and payroll, but they do NOT want to disrupt their relationship with the retail brand by involving a third-party collections agency.
The OGL Solution: The logistics provider submits the accepted bill of exchange to OGL. OGL advances 80% of the value immediately. The logistics provider continues to manage their customer relationship normally. At the end of the 60 days, the retail brand pays the logistics provider, who then settles the discounted bill with OGL. The relationship remains private and intact.
Know the Difference
Bill Factoring vs. Bill Discounting
| Feature | Bill Factoring | Bill Discounting |
|---|---|---|
| Control of Collections | OGL manages | You manage |
| Customer Relationship | Disclosed to debtor | Not disclosed |
| Advance Rate | Up to 90% | Up to 80% |
| Credit Risk | Absorbed by OGL* | Remains with you |
| Best For | High-volume invoicers | Established, trusted customers |
| Disclosure | Yes — to debtor | No |
*Subject to recourse terms. Non-recourse factoring available for qualifying accounts.