Banking · Working Capital Finance & Trade Instruments
A company facing mismatch between receivables and payables may prefer bill discounting rather than a term loan. Bill discounting is attractive primarily because it allows the firm to:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1hedge interest rate swaps automatically
- 2convert equity capital into current liabilities
- 3realize the value of trade bills before maturity to improve liquidity✓
- 4avoid repayment obligation entirely
Correct answer
realize the value of trade bills before maturity to improve liquidity
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