POST-DATED CHECK DISCOUNTING LINE
What is Post-dated Check Discounting?
A credit accommodation wherein a borrower endorses his Trade PDCs to the Bank at a discount.
Trade PDCs arise from the sale of goods or services on credit by a Supplier (the borrower) to a Buyer (the PDC issuer).
Benefits of PDC to the Businessman:
Addresses cash shortages (bridges receivables and payables)
Allows him to take advantage of business opportunities
Collateral-free loan product (subject to some eligibility criteria)
Stand-by LINE product (at client’s discretion when to use it)