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Factoring - invoice financing to increase the company’s competitiveness

Factoring - invoice financing to increase the company’s competitiveness

  • Immediate payment of invoices without waiting for the payment term
  • Funding without any collateral
  • Possibility to insure debtor risk, securing yourself against loss in case of debtors’ insolvency

Factoring is the immediate payment of invoices issued to buyers in accordance with the terms of the factoring agreement that can be concluded without involvement of debtors. Your company’s competitiveness increases when you can offer more flexible payment terms to your debtors. Therefore, you obtain current assets for your company.

1

The Seller issues an invoice to the Buyer for goods or services.

2

The Seller provides a copy of the invoice to SEB leasing.

3

SEB leasing pays the Seller up to 90% of the invoiced amount.

4

The Buyer transfers the invoiced amount in full to SEB leasing within a set payment term.

5

SEB leasing pays the remaining part of the invoiced amount to the Seller.

6

If the Seller uses debtor insurance, before issuance of regress invoice, SEB leasing submits an insurance event to the Insurer.

Additional benefits:

  • Improved cash flow and increased sales;
  • Possibility to attract more favourable funding by using the risk assessment of the buyer;
  • Security against currency fluctuations;
  • Improved payment discipline of buyers;
  • Faster payments to your suppliers;
  • More flexible payment terms for your buyers.

Choose the most suitable type of factoring according to the needs and situation of your company:

Export factoring

This is the most suitable funding, if your company exports products or provides services outside the territory of Latvia.

After receipt of application, SEB leasing will review the possible insurance limit or will become the beneficiary of your insurance policy. If a positive decision is received from the insurer, SEB leasing will start factoring of the invoices of your foreign buyers.

You will receive invoice advance payments in the invoiced currency (EUR, USD, GBP, NOK, SEK, DKK), protecting your company against the currency fluctuation risk that occurs when you wait for payment in the currency that is not the main currency for your expenses.

Export factoring with debtor risk insurance will help you to decrease the risk of losses if the buyer delays the invoice payment or becomes insolvent. If you are not completely sure about the solvency of a foreign company, factoring with debtor risk insurance will be especially suitable for you.

Domestic factoring

This is the most suitable financing, if your company supplies products or provides services in the territory of Latvia.

This type of factoring simplifies cooperation with the domestic debtors for immediate receipt of payments. It is possible to arrange factoring without involving debtors and to receive funding without the need for a commercial pledge, because the factorised debtor claims will serve as security for the issued funding.

Reverse Factoring

This is the most suitable funding to improve the company’s financial situation without additional costs, if your company has a good credit assessment and you would like to strengthen your supply chain – extend the payment term of your products or services, obtain discount with mutually favourable conditions, or support your supplier by using your credit rating.

This funding is also suitable if you deliver products or provide services to a company with a good credit rating and you would like to attract funding to your company at the price of buyer’s company credit risk and the buyer supports the structure of your current assets funding.

The added value of this solution occurs when the buyer and supplier have different credit risk assessment. The buyer and seller both benefit and can make additional investments, pay dividends and cover existing liabilities with the most favourable funding rate.

 

Factoring agreement term – up to 12 months
 
Deferred payment for buyers – up to 120 days
 
Immediate payment to the seller – up to 90% of the invoiced amount

To receive the service, please apply for a consultation and submit the factoring application (PDF), by signing it with an electronic signature and sending to e-mail: info@seb.lv

If you have any questions, please contact your client executive or call our Customer centre at +371 26668777.

  In force from In force to
Factoring application
25.05.2018
In force
Guarantor’s application for legal entities
25.05.2018
In force
Services Fees
Review of the factoring application Free of charge
Processing a factoring 0,1%-1,5% of the total factoring limit,
min 430.00 EUR + VAT
Amendments in the factoring contract:
   •  increasing of the limit 0,1%-1,5% of the increased factoring limit,
min 215.00 EUR + VAT
   •  change of the advance rate starting from 99.60 EUR + VAT
   •  change of the deferred payment term starting from 99.60 EUR + VAT
   •  addition of a new buyer starting from 99.60 EUR + VAT
   •  other amendments to the factoring agreement starting from 99.60 EUR + VAT
Term prolongation for factoring agreement 0,1%-1,5% of the total factoring limit,
min 290.00 EUR + VAT
Administration of invoices:
   •  regressive starting from 0,1% of the invoice sum + VAT
   •  with debtor risk insurance starting from 0,35% of the invoice sum + VAT
Limit review commission with the insurer From 20.00 EUR + VAT
Provision of accounting references 30.00 EUR + VAT
Provision of non-standard references

60.00 EUR + VAT

Issue of document copies from the archive 30.00 EUR + VAT

Entrepreneur service plans

Beneficial package of services for everyday transactions

Contacts

  • +371 26668777
    +371 67779988

    Block payment card and internet bank

    24/7

    Other questions

    Private customers

    Mon - Fri 08.00 - 21.00
    Sat, Sun and holidays 10.00 - 18.00

    Business customers

    Mon - Fri 08.30 - 18.00

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