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LC Backed Bill Discounting

Short-term credit facility provided by your bank

Apply For LC Backed Bill Discounting

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About LC (letter of Credit) Backed Bill Discounting

    Discounting of Letter of Credit is a short-term credit facility provided by the bank to the beneficiary. Bank purchases the documents or bills of the Seller (beneficiary) after he fulfills certain compliances and provides the required documents to be dispatched to LC opening bank. On meeting these compliances as per the LC terms, the bank makes him/ her the payment for a security or a fee.

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  • AU Small Finance Bank can pay seller the discounted value of the invoice, immediately up on shipment.
  • AU Small Finance Bank offers this service at competitive rates in rupee with world class service standards.

Fees and Charges

  • Competitive commission fee
  • Competitive margins
  • Transparency in other charges


  • Comprehensive range of inland Trade Finance Services
  • Customized solutions to cater to all requirements
  • Expertise and dedicated manpower for transactions
  • Single window contact point
  • Simplified process with minimal documentation
  • Excellent turnaround time

List of Documents

  • Documents required as per the LC terms for lodgement and dispatch to LC issuing bank
    1. Bill Of Exchange
    2. Commercial Invoice and Packing List
    3. Transport Document i.e. (lorry receipt/ rail receipt)
    4. Delivery Challan, if any
  • Acceptance from LC issuing Bank
  • Discounting request letter

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