clients who supply their goods and services with deferred payment
Characteristics of Forfaiting:
assignment to the bank of the client’s receivables due in the future for a fee, without recourse to the original owner of the receivable (usually the supplier)
the subject of forfaiting is receivables which were created in terms of commercial transactions implemented by the client
can be implemented in two ways:
at the risk of the banking entity, when the receivable is represented by
a bill of exchange or promissory note with bank aval
a documentary letter of credit
at the risk of the commercial entity (debtor – customer), when the receivable represents
an invoice
bill of exchange without bank aval
minimum receivable maturity: usually 45 days
minimum amount of the assigned receivable: approx. EUR 33,000 or equivalent of this amount in foreign currency
the price for assigning the receivable is set individually and especially depends on:
the financial standing of the debtor
the level, maturity and nature of the receivable
all fees are usually deducted from the amount paid at the moment the receivable is purchased
Advantages of Forfaiting:
transfer of risks (political and commercial) relating to payment of receivables assigned to the bank
a flexible form or financing which does not increase the credit exposure of the supplier in Komerční banka, a.s., pobočka zahraničnej banky
decrease in the volume of receivables on the balance sheet
improvement of financial indicators
increase in competitive ability of the supplier when winning orders - possibility of providing a supplier loan (deferred payment) to customers
Forfaiting can already be arranged in the pre-contracting stage and its costs can thus be included in the price of the goods delivered
Forfaiting allows you to:
offer your customers deferred payment for deliveries and gain funds for provision of a supplier loan
transfer political and commercial risk relating to payment of receivables to the bank
