The bill discounting is a credit facility more usual in the commercial banks.
It is a financial transaction, typically of short-term, where the bank anticipates to the customer the amount of
credit future maturity date against a third party, at a discount rate.
In the case of the third, in the maturity of the operation, fails to comply with its commitment, the amount not paid will be charged to the customer.
The value discount is the (difference between face value and net value received) represents the charges, for the customer.
The cost on the transaction in term of rate is obtained by calculating the Effective rate discount.
The discounts for multiple bills and different maturities, is obtained by calculating the Average term discount.
To separate decimal place, use the decimal point. E.g. 25,152.47; enter 25152.47;
To calculate the value to receive in advance or Present discounted value, enter data as requested, the result is showed, automatically by clicking on "Calculate". For the calculation is assumed commercial year.
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