- Calculating the present value of a future amount. Discounting is opposite to compounding. Bloomberg Financial Dictionary
* * *discounting dis‧count‧ing [ˈdɪsˌkaʊntɪŋ] noun [uncountable] FINANCE1. also invoice discounting COMMERCE when a financial institution lends a business an amount of money equal to that owed to the business by its suppliers, in return for a percentage. This is good for the business because it gets the money immediately, improving its cash flow. Discounting is a form of finance that can be cheaper than bank loans or overdraft S:
• For invoice discounting, fees are typically between 0.2% and 0.5% of the value of invoices.
• If you have a lot of money tied up in your sales ledger in unpaid bills, invoice discounting is a way to release this money for you.2. the activity of buying a bill of exchange for less than the amount that will be paid on it on a fixed date in the future
* * *discounting UK US /dɪsˈkaʊntɪŋ/ US /ˈdɪskaʊntɪŋ/ noun [U]► COMMERCE the activity of reducing prices in order to sell larger quantities of goods or services: heavy/aggressive/deep discounting »
Shoppers are taking advantage of heavy discounting by retailers that are desperate to offload surplus stock.discounting of/on sth »
Price discounting of Caribbean cruises has become widespread in recent months due to softening demand.»
a discounting campaign/war/frenzy► (also invoice discounting) FINANCE, BANKING the arrangement in which a bank lends a company a sum of money that is a percentage of the amount the company is owed. In exchange the bank receives the payments collected by the company: »
Discounting has provided a big boost for small business finance in recent years.► FINANCE the act of buying a bill of exchange for less than the value shown on it
Financial and business terms. 2012.