Factoring

Factoring means aggregate of services rendered by the bank to a company when it assigns its rights to  monetary claims (receivables ) to the Bank under invoices issued to its clients (other companies) for goods and services, i.e. You

What are the benefits of the service?

What are factoring key conditions?

 

Šiaulių Bankas and Lithuanian branch of insurance company Compagnie Française d'Assurance pour le Commerce Extérieur signed the insurance policy according to which  marketable credits of the Lithuanian and foreign buyers of the factoring clients are insured.

Seller's benefits:

  • fast way to supplement the company's working capital and increase its liquidity;
  • business is financed without property pledge;
  • customer payment discipline improves;
  • it becomes easier to plan company's cash flows;
  • debt administration costs reduce;
  • allows using suppliers' discounts offered for prepayments;
  • easier to control - you can offer longer settlement terms to the buyers.

Buyer's benefits:

  • allows receiving longer settlement term;
  • easier to attract new suppliers;
  • easier to pay the seller;
  • liquidity increases without additional financing sources;
  • it becomes easier to plan cash flows.

The following documents must be submitted to Šiaulių Bankas

  • a filled in factoring application;
  • agreements with each buyer;
  • annual and quarterly financial statements (a balance sheet, a profit (loss) statement, a cash flow statement, an equity variation statement, an explanatory note) for current and previous two business year;
  • additional documents required by the loan officer taking into account the nature of Your business.

Where to apply for factoring?

Please do not hesitate contacting the Client Information Centre of Šiaulių bankas by tel.  +370 700 1813  (+370 301 337 337 when calling from abroad).