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Tatra banka

22.4.2018 10:58

Discounting of bills

Tatra banka purchases bills-of-exchange or promissory notes and assesses the risk of the bill drawee.

  • fast processing and cash disbursement
  • one framework contract
  • the discounted bill is not reflected in the financial indicators as a drawn loan


  • fast processing meaning cash disbursement on the day the bill-of-exchange is submitted or the following day 
  • the provision of discount framework means that only one framework contract is made, no need of additional contractual documentation upon individual disbursements 
  • the discounted bill is not reflected in the financial indicators as a drawn loan 
  • discounting of bill enables the creditor:
    • to increase liquidity by shortening the receivable maturity to maximum 1 to 2 days
    • to improve the competitive position by providing a longer maturity period to customers,
    • to improve cash flow by obtaining cash prior to the bill-of-exchange maturity
  • discounting of bills offers to the debtor:
    • possible deferred payment
    • the option to obtain a business loan


  • a bill-of-exchange is a traded security where the issuer undertakes to pay the bill owner a certain amount on maturity (promissory note) or the bill owner is commanded to pay a certain amount to another person (promissory note)
  • the client offers a bill-of-exchange due in the future for purchase, the bank deduces a discount for the provision of immediate cash and remits the remaining amount to the client's account
  • the discount represents interest due in advance on the bill-of-exchange discounting date, and the interest rate is based on the respective Euribor
  • documentation: invoice, delivery note, acceptance protocol, shipping document
  • conditions for discounting of bills-of-exchange:
    • financing up to 100 % of the bill value
    • minimum value of the bill must be EUR 30,000 or an equivalent in foreign currency
    • individual bills are due and payable within minimum 30 days and maximum 300 days from the date of issue
    • we only discount bills of trade (covering the supplies of goods and services)
    • the option to purchase bills with or without recourse
    • the option to use the bill guarantee as a means to improve the bill creditworthiness


Discounted purchase of bills-of-exchange or promissory notes prior to their due date is available to companies of various fields. They can be:

  • natural persons and legal entities granting a supplier loan to their suppliers
  • entrepreneurs who offer deferred maturity to their business partners or who are setting-up cooperation with a new customer using a bill-of-exchange
  • companies from agriculture, food industry, basic industry, processing companies, commercial companies, exporters

For more information on discounting bills-of-exchange: