- Slovakia
- Products
- Trade finance
- Purchase of Receivables, Forfaiting
Purchase of Receivables, Forfaiting
We will pay receivables to you or your suppliers before their due date
reduce the volume of receivables in your balance sheet
be more competitive by offering credit to your customers
the costs of the purchase of receivables or forfaiting can be included in delivery costs
Characteristics of purchase of receivables
- it provides financing for trade receivables with a future due date,
- it can be provided both with and without recourse to the original owner of the receivable,
- the minimum payment period for purchased receivables is usually 60 days,
- short-term, medium-term, and long-term receivables can be purchased,
- the price for assignment is set on an individual basis depending mainly on the creditworthiness of the debtor, the payment period, and the type of the receivable,
- assignment of receivables can be agreed at the pre-contract phase and thus the cost can be included in the price of delivery.
- the main users of purchase of receivables and forfaiting are clients who supply goods and services with a long payment period.
- supply goods and services with a longer payment period,
- obtain funds before the due date,
- be more competitive by offering credit to your customers
an invoice,
a promissory note, bill of exchange without recourse to a bank.
Characteristics of forfaiting
- it is similar to the process for purchase of receivables,
- there is never recourse to the original owner of the receivable,
- forfaiting prices are set on a case-by-case basis,
- they depend mainly on the creditworthiness of the debtor, the payment period and the nature of the receivable.
a promissory note, bill of exchange with recourse to a bank,
a documentary letter of credit.