Invoice Financing

Invoice Financing - a simple and quick way to obtain working capital

  • Your sudden demand for working capital can be satisfied immediately – just submit to the factoring company one or several invoices with a deferred payment term and we will make financing decision within 1 working day;
  • Invoice Financing works similarly to Standard Factoring but you do not have to sign up long term factoring agreements with the factoring company;
  • You will get the financing without visiting the factoring company‘s office – all the information necessary for financing can be presented and the factoring agreement can be signed in the Internet bank.

General financing conditions

Total amount of invoices* from 3.000 EUR up to 35.000 EUR
Right of recourse with recourse (the seller is responsible for the buyer‘s solvency)
Advance rate** 90% of the invoice amount with VAT
Payment term up to 90 days
Interest fee 1% per month (12% yearly) from the paid advance amount
*
  • Total amount of invoices of maximum 35.000 EUR is available if the documents are signed with mobile signature or e-signature with personal identity card;
  • Total amount of invoices of maximum 10.000 EUR is available if the documents are signed with a PIN code generator;
  • The documents can be signed only by the head of the company.

** When reverse VAT payment scheme is applied and the buyer is obliged to pay the VAT to the taxes administrator, the financed amount of the invoice is decreased by VAT amount and the advance payment is calculated from the invoice amount without VAT.

Your invoice is most likely to get financed if the following conditions are met

  • The buyer and the seller are stable working entities registered in Lithuania;
  • The buyer had no significant payment delays during past calendar year;
  • The buyer and the seller are not related enterprises;
  • The seller is not operating in construction sector;
  • The sales to the buyer whose invoices are financed do not exceed 50% of the seller‘s total sales;
  • The right of monetary claim according to the invoice is not restricted (pledged, etc) in any way and the right of its transferring to third parties is not restrained;
  • Currently there are no disputes and/or counterclaims between the buyer and the seller or other reasons which enable the buyer to decrease the payable amount under the invoice (-s);
  • The goods are already sold or services are already provided according to the invoice;
  • The payment term under the invoices is clearly defined as the specific date and does not depend on any events, for example on the resale of the goods by the buyer.
  • No need for planning and signing of long term factoring agreements.
    There is no long term commitment: a short term factoring agreement is signed each time you need financing, regarding only those invoices that you provide at a time.
  • No pledge or surety required.
    Financing is provided by transferring the monetary claim, therefore no additional pledge or shareholder‘s surety are required.
  • Simple pricing.
    The price consists only of the interest for the borrowed amount; the interest rate is 1% per month (12% yearly). There are no other fees: no agreement fee, no invoice administration fees.
  • Fast payment.
    The decision regarding financing is made during 1 business day, the money is paid out immediately after the factoring agreement is signed.
When should be chosen Invoice Financing and when Standard Factoring?
Invoice Financing Standard Factoring
Financing need Occasional, unpredictable Permanent, regular
Amount needed Smaller amounts (up to 35.000 EUR) Bigger amounts
Time to financing 2-3 days 1-2 weeks
  1. Get acquainted with the financing conditions.
  2. Fill in very short application (use a button “Fill in application” above).
  3. Present us one or several invoices (use a button “Document upload” in the bottom of the page) which can be without signatures of the parties or Assignment Text regarding transfer of the claim to the factoring company. These invoices are needed for a decision making.
  4. You are waiting for a decision regarding financing, which is made during 1 business day; the answer will reach you by e-mail indicated in the application.
  5. In case of a positive answer you have to present us in the Internet bank (use a button “Document upload” in the bottom of the page):

    • Invoice/-s with Assignment Text and signed by the seller's and by the buyer's authorized representatives, the invoices must be presented in pdf format.
    • If there is no Assignment Text on the invoice, you should additionally fill in and present us the Introductory Letter, which has to be signed by the buyer's and the seller's authorized representatives.
  6. You sign the Factoring Agreement in the Internet bank.
  7. You receive a payment (90% of the invoice/-es amount).
  8. Buyer pays invoice amount to the factoring company within the payment term specified in the invoice. You receive remaining payment (10% of invoice/-es amount deducted by calculated interest).

Please get acquainted with the financing documents:

Documents for financing can be presented here:

Financing expense calculator

Invoice amount
Advance Payment to the Client
EUR
Payment term
Financing fee
0.00EUR

Pricing

  • Invoice Financing is a product with a very clear and simple pricing. There are no complicated fees.
  • The only fee you have to pay for the borrowed amount is interest fee that is equal to 1 % per month (12% yearly). You pay only for the period that you use the money and only for the amount that you receive.

Example

You have decided to transfer an invoice of 10.000 EUR to the factoring company. The payment term of the invoice was 75 calendar days from the issuing date. The invoice was transferred to the factoring company 5 calendar days after the issuing date; the buyer paid the invoice 10 calendar days before the estimated payment term.

Your expenses are calculated accordingly:

  1. You will receive the advance payment which equals 9.000 EUR (90% of the 10.000 EUR invoice);
  2. The actual time period money was used is 60 calendar days;
  3. The interest rate - 1% per month.

Therefore, the financing expenses in 60 days from the borrowed 9.000 EUR with the interest rate of 1% per month will be 180 EUR.

Contacts

If you have any questions or comments please contact us:

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