• Forfaiting

    Irrevocable trade receivables discounting.

Quickly

Get paid immediately after the goods are delivered and the documents are accepted under the letter of credit.

Smart

Remove receivables from your balance sheet.

Risk-free

Transfer the risks of receivables to your bank.

Better cash flow

Funds available for your current needs.

Why KB?

Included in the price

It can be arranged before your contract and included in the purchase price.

No debts

Do not increase your credit exposure unnecessarily.

Increase your business

Offer longer payment terms and improve your negotiating position with your trading partners.

How to get this product?

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Amount of receivables

The minimum receivables are usually CZK 1 million or the equivalent in a foreign currency.

Maturity

The minimum maturity is usually 45 days.

Fees

The fees for assigning receivables are determined individually.

About Forfaiting

  • Forfaiting is assigning outstanding receivables under a documentary letter of credit
  • Forfaiting is irrevocable Forfaiting a purchase of receivables where the payment is received immediately after the goods/services are delivered and the documents accepted under a letter of credit
  • Reduce the receivables on your balance sheet
  • Improve your company’s financial indicators
  • Increase your competitiveness and gain new customers through longer payment terms
  • The individual price for assigning receivables depends on the financial standing of the bank issuing the letter of credit and the amount and maturity of the receivables. Bank fees are usually deducted from the nominal value of the receivables when the Forfaiting transaction is carried out.

You might also like to know

  • Forfaiting can be arranged before a purchase contract is signed so that its costs can be reflected in the final price. 
  • Forfaiting is for:
    • Companies and other incorporated entities

Transaction scheme

Example of purchase of receivables under a documentary letter of credit
  1. Purchase contract
  2. Request for issue of a documentary letter of credit
  3. Letter of credit
  4. Delivery of goods or services
  5. Presentation of L/C documents
  6. Acceptance of L/C documents
  7. Forfaiting contract + assignment of the recievable
  8. Payment of the discounted nominal value of the recievable
  9. Collection of the nominal value of the recievable as at due date