Forfaiting

Forfaiting equals Raiffeisen Bank’s excellence in financing. The starting point of every transaction is the granting of a supplier's credit by the seller, to buyers of capital and consumer goods, raw materials and services. The supplier accepts to receive payment subsequent to the delivery, within a timeframe extending from short to long term.
 
Forfaiting pertains to purchase/sale of receivables materialized as fixed due dates promissory notes or bills of exchange that result from the delivery of goods and services.

Raiffeisen Bank is buying these receivables from the supplier or holder, usually without recourse to the seller, against withholding of a forfaiting tax and charging a fee.

Currently, Raiffeisen Bank forfeits (buys) promissory notes:

• guaranteed by the State;
• guaranteed or endorsed by a commercial bank (whose risk should be acceptable to Raiffeisen Bank);
• issued by municipalities;
• issued by companies/entities acceptable to the bank.

The Benefits of Forfaiting for Your Business:

• turns your supplier credit into cash,
• immediate collection of receivables,
• no risk of delayed payment, as the risk is undertaken by the Bank,
• involvement in long term & more profitable transactions thanks to available financing.

Talk to one of our product specialists about forfaiting and the advantages you can gain from it.