- Present participle of discount.
discounting - Investment & Finance Definition
A method that is used to finance receivables by discounting or selling them. The financier, usually a bank, deducts the interest from the maturity value of the note and then gives the proceeds to the receivables holder, who then endorses the receivables note and delivers it to the bank. If the maker of the note or receivable doesn’t pay the obligation, then the original receivables holder is liable to the bank for payment.