Homepage Information What is the purchase of receivables?

About purchase of receivables

1. What is the purchase of receivables?

  • purchase
  • management
  • funding
  • collection
  • assumption of risk (securing) of short-, medium- and long-term accounts receivable (usually longer than 180 days) arising from deliveries of goods, services or construction works

2. Criteria for purchase of receivables

  • accounts receivable must be assignable and collectible
  • one-time or repeated deliveries
  • minimum amount of assigned receivables usually CZK 5 million
  • company with at least one-year history
  • payment conditions – to an open account
  • receivables can be purchased with or without recourse

3. Procedure for concluding a framework agreement on assignment of receivables for consideration

  • presentation of preliminary factoring application form (for purchase of accounts receivable)
  • offer of indicative business terms
  • presentation of binding application form for factoring based on negotiations with Factoring KB
  • presentation of necessary documentation
  • credit analysis and assessment of business case by Factoring KB
  • conclusion of a framework agreement on assignment of receivables for consideration

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