Raiffeisen Bank 

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Infoline: 800 900 900

Factoring

Raiffeisenbank purchases, finances and administers short-term receivables arising to clients based on deliveries of goods and services. Receivables from domestic and foreign customers are purchased.

Benefit

  • A client’s receivables are paid sooner and care for administration and collection of the receivables is transferred to Raiffeisenbank.
  • The option of provision of deferred payment – provision of supplier loans.
  • The option of further financing upon drawings on other credit lines.
  • Reductions in the volume of receivables on a balance sheet, improvements in liquidity and financial indicators.
  • Electronic form of communication with Raiffeisenbank – assignment of receivables, reporting on balance of receivables.
  • Reduced risk of losses due to movements in exchange rates for receivables denominated in a foreign currency.
Factoring is suitable for production and trading companies whose sales activities have fast turnover, require the provision of short-term supplier loans and place high demands on working capital.

Characteristics of purchased receivables

  • Annual amount of receivables assigned (sold) to the bank: no less than CZK 30 million.  
  • Receivables due within more than 14 days.
  • Receivables are purchased before due date.
  • There is no prohibition on assigning receivables resulting from commercial contracts between the client and his customer.

Method of purchasing receivables

  • Receivables are purchased through their assignment to the bank for consideration
    • With recourse, i.e. if the customer does not pay by the end of the grace period (deadline after a receivable’s due date, usually 60 days), the receivable is assigned back to the client.
    • Without recourse, i.e. the bank accepts the risk of the debtor’s inability or unwillingness to pay and insures the receivables with a credit insurance company.
  • Raiffeisenbank purchases the receivables in the amount of 100% of the amount specified on the invoice including VAT. It provides clients with a contractual advance on the assigned receivables totalling 80% or 90% of their nominal value. The remaining balance of a receivable is paid by the bank into the client’s account promptly after payment is received from the debtor.

 


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