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Businesses registered and domiciled for corporate income tax in the Czech Republic.
Bills of Exchange
KB processes foreign and domestic bills of exchange in Czech crowns, euros, and other currencies.
About Discounting Bills of exchange
- It is a short-term loan intended to finance trade receivable before maturity.
- It is possible to receive funding with low interest rate for a relatively long period of time
- No conventional security instrument is usually required
- Domestic bills of exchange in Czech crowns and euros due and payable within the Czech Republic
- Foreign bills of exchange in Czech crowns and euros due and payable outside of the Czech Republic
Komerční banka discounts bills of change if:
- They are paid as they fall due
- On non-recourse basis i.e. collection of unpaid bills is the responsibility of the borrower
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- Under the Agreement on discounting bills of exchange Komerční banka may deduct face value of any unpaid bills of exchange from the borrower’s current account.
- Price, interest rate, and other fees:
KB will deduct non-refundable processing fee from the face amount of the bill according to the Pricelist valid at the time of discounting.
Interest is also deducted from the face amount of the bill.
- Daily interest is subject to 365/360 interest rate calculation method
- Interest is deducted for the period from the discount date to the payment date
- Interest is also deducted from the face amount of the bill.
Additional fees may be charged for foreign bills of exchange:
- KB bill collection charges – per Pricelist applicable
- Any freight charges incurred by KB
- Collection charges of a foreign bank
- Any fees associated with a bill protest
Important information for you
The borrower shall submit the following documents to the bank:
- Request to discount the bill of exchange in writing, including any annexes required by the bank
- Documents certifying the applicant’s legal personality
- Documents corroborating the commercial nature of the bill of exchange (upon request of a KB branch)
Business Terms and Conditions of specify which bills of exchange can be discounted:
- With fixed maturity date
- With remaining maturity of 1 to 12 months
- With face amount of no less than CZK 100,000 (or equivalent amount in foreign currency)
- Domestic – with a clause releasing the owner (bank) from an obligation to handle the protest process
- Foreign and domestic in EUR – with an effective clause for the event that the bill of exchange currency differs from the payment location currency