Discounting Foreign Bills

Funding working capital through discounting foreign bills of the customers who received those bills as payments for receivables from their foreign buyers.

Maximum amount

100% of receivable from the foreign buyer

Period

up to 12 months

Interest and fees

based on credit standing and income level

Repayment method

one-time

Currency clause

yes

Security instruments

for X different maturity dates of bills:

  • minimally 1 bill of the endorser for each five different maturity dates
  • irrevocable authorisations for receivable collection with statements for each agreement

Other:

  • if the credit standing of the foreign buyer or endorser is not acceptable, the bank may request a foreign bank bill guarantee
  • credit standing of the foreign company or the guarantor bank is checked by using Dun & Bradstreet or other database or by consulting the International Credit Risk Management of Erste Bank Vienna