Other financing

Domestic recourse factoring

The bank purchases the invoices of its clients (the Suppliers) for cash, while the Bank has a recourse right towards the client in case the receivable expires.


Why is it attractive to the Supplier?

  • Factoring is extremely attractive to small and medium sized enterprises in need of liquidity, who – based on their balance sheet – would never qualify for a bank financing facility
  • We recommend this facility if your company is under-capitalised, going through a restructuring process or happen to be in a phase of intensive growth, - or characterised by a mixture of these three. However, if you have better than average clientele, then by factoring their turnover, you are able to convert your client receivables into cash within a short period of time.
  • Up to 80-90% of the total value of invoices can be financed
  • Quick and flexible service


Short term financing secured by warehouse receipt

Producers are financed in short term with the collateral of warehouse receipts issued by the Warehouse Companies in form of setting up credit line or individual financing facility contracts. Offered to all entities who are in possession of warehouse receipts eligible for financing.
Ratio of financing: max. 75% of the product value

Products to be financed:

  • agricultural products (especially commodity exchange products)

Advantages to the Borrower:

  • short approval, quick disbursement
  • Also available for advance financing related to EU intervention income
  • flexible service
  • moderate credit interest


Bill/promissory note discounting

Bill discounting is a financial deal, when the owner (Endorsee) of the bill sells the bill to the bank, and in exchange the bank grants the discounted amount of the face value of the bill to the customer. Before the maturity date of the Bill (P/N) the Issuer pays the face value of the deal to the Bank. Promissory Note shall be issued on the basis of a commercial deal, unless a VIC customer applies for bill discounting facility.



The bank purchases future, well-scheduled medium term claims (arising mainly from rental contract) with or without recourse. The bank pays the discounted value (present value) of future receivables to the payee (Lessor) and equal amount of fees are paid regularly by the payer (Lessee) to the bank. (Calculation is made on annuity base.) The fee shall cover the principal and interest of the deal.
Advantages of Forfeit financing:
  • Payee receives the total discounted counter-value upfront
  • Also can be applied without recourse


Financial lease

The Bank as lessor purchases the asset in order to let the Lessee use it against leasing fee during the lease period. The asset and the supplier is selected by the Lessee and all other conditions of the purchase are set in the purchase contract. The bank pays the purchase price directly to the supplier.
Lessee is paying leasing fee to the bank – which covers the principal and interest charged – in equal amount and according to an agreed regular schedule. The calculation is made on annuity base. After repayment of the total outstanding the asset shall be purchased by the Lessee at a preliminarily agreed residual value. The ownership right is transferred automatically to the Lessee.
Advantages of Financial Lease:
  • It  can be a long-term facility.
  • Well-calculable
  • The leased assets  can be used before it becomes the real possession of the company.
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