Bill of Exchange Discounting

Short-term loan to finance inventory and trade receivables to maturity.

How may we
assist you? 

We will settle your
customers’ bills of
exchange prior to
maturity 

Quickly receive long-term funding

No loan security required

Low interest rate throughout the loan term

Automatic bill of exchange settlement at maturity

USEFUL INFORMATION

  • Short-term loan aimed at financing trade receivables to maturity
  • Receive liquid financial funds and benefit from a loan with low interest rate for a relatively long period of time
  • Intended for businesses registered and domiciled for corporate income tax in the Czech Republic
  • No standard security instruments usually required
  • In case an acceptor fails to make payment to the bank at maturity, the drawer shall be liable to the bank with regard to any outstanding bill of exchange amount
  • Domestic bills of exchange in CZK and EUR payable within the Czech Republic
  • Foreign bills of exchange issued in CZK and foreign currencies payable outside the Czech Republic

We only discount bills of exchange that comply with our business terms and conditions 

  • Bills with fixed maturity date
  • Remaining maturity normally 1 to 12 months
  • For amounts of no less than CZK 100,000 (or foreign currency equipment)
  • Domestic – with a clause release the owner (bank) from an obligation to handle the protest process
  • Foreign and domestic in EUR – with an effective clause for the event the bill of exchange currency differs from the payment location currency

We discount bills of exchange on condition of their payment and provided the drawer shall be liable for collection of unpaid bills.

Necessary documents

  • Request for bill of exchange discounting, including any annexes requested by the bank
  • Documents certifying applicant’s legal personality
  • Documents corroborating the business nature of the relevant bill of exchange (upon request by a KB branch)