discounting

discounting
Calculating the present value of a future amount. Discounting is opposite to compounding. Bloomberg Financial Dictionary

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discounting dis‧count‧ing [ˈdɪsˌkaʊntɪŋ] noun [uncountable] FINANCE
1. 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

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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.

→ Compare FACTORING(Cf. ↑factoring)
► FINANCE the act of buying a bill of exchange for less than the value shown on it

Financial and business terms. 2012.

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Look at other dictionaries:

  • discounting — index mitigating Burton s Legal Thesaurus. William C. Burton. 2006 …   Law dictionary

  • Discounting — Calculating the present value of a future amount. The process is opposite to compounding. The New York Times Financial Glossary * * * discounting dis‧count‧ing [ˈdɪsˌkaʊntɪŋ] noun [uncountable] FINANCE 1. also invoice discounting …   Financial and business terms

  • Discounting — For discounting in the sense of downplaying or dismissing, see Minimisation (psychology). For the band of the same name, see Discount (band). See also: Discounts and allowances Discounting is a financial mechanism in which a debtor obtains the… …   Wikipedia

  • Discounting — Discount Dis count (?; 277), v. t. [imp. & p. p. {Discounted}; p. pr. & vb. n. {Discounting}.] [OF. desconter, descompter, to deduct, F. d[ e]compter to discount; pref. des (L. dis ) + conter, compter. See {Count}, v.] 1. To deduct from an… …   The Collaborative International Dictionary of English

  • Discounting Mechanism — The premise that the stock market essentially discounts, or takes into consideration, all available information and present and potential future events. When unexpected developments occur, the market discounts this new information very rapidly.… …   Investment dictionary

  • discounting — dis·count || dɪskaÊŠnt n. price reduction v. disregard, ignore; reduce the price of, mark down; give a discount …   English contemporary dictionary

  • Discounting —   A method of financial and economic analysis used to determine present and future values of investments or expenses …   Energy terms

  • discounting — 1) The application of discount factors to each year s cash flow projections in a discounted cash flow appraisal calculation. 2) The process of selling a bill of exchange before its maturity at a price below its face value …   Accounting dictionary

  • discounting — 1) The application of discount factors to each year s cash flow projections in a discounted cash flow appraisal calculation. 2) The process of selling a bill of exchange before its maturity at a price below its face value …   Big dictionary of business and management

  • discounting —  n.m. Pratique du discount …   Le dictionnaire des mots absents des autres dictionnaires

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