Discount Loans

Discount loans are a type of cash loan made against a commercial note that has not yet fallen due. The note's debtor must reside in the same municipality as the bank branch to which it is presented. The amount paid in cash is the face value of the note less the interest accruing on the note until its maturity and the taxes, duties, and charges due on the note. In a discount loan, the discounted note is endorsed over to the bank, which assumes responsibility for collecting it.

Features

• Discount loans offer convenience and flexibility for companies that have large portfolios of notes and are in need of cash now.