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Discounting of bills of exchange ((See Chapter 47 of the Vernimmen))
Discounting of bills of exchange is a financing transaction wherein a company remits an unexpired commercial bill of exchange to the bank in return for an advance of the amount of the bill, less interest and fees. Depending on the accounting principles and the exact form of discounting, this financing can be off or on balance sheet.
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Definitions of terms begining
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Discounting of bills of exchange ((See Chapter 47 of the Vernimmen))
Discounting of bills of exchange is a financing transaction wherein a company remits an unexpired commercial bill of exchange to the bank in return for an advance of the amount of the bill, less interest and fees. Depending on the accounting principles and the exact form of discounting, this financing can be off or on balance sheet.
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