Switch to mobile version. Top

Business

Factoring

Factoring

Services that help to manage the cash flows

  • There is a fast and easy way to get current assets without pledging property
  • By entrusting us with collecting and administrating funds, you cut your costs
  • We keep track of the solvency risk of your customers

We can help you manage the debt obligations of your contractors or customers. Enter into a factoring agreement with the bank to receive payments for your goods and services direct from the bank and not from customers.

Factoring means a service package which is about buying accounts receivable when you transfer the pecuniary claim rights to the bank against invoices issued to your clients.

Benefits for the seller of goods or services

The key advantage is using three handy services under a single agreement.

The seller of goods or services is financed

You can get additional current assets without pledging property:

  • When you provide settlement documents to the bank, it pays you an advance of up to 90% of the invoiced amount
  • As soon as the buyer settles accounts with the bank, you are paid the remaining amount

The seller’s accounts receivable are collected and administered

You waste less time and minimise your operating costs that are normally required to secure revenue and to monitor and plan the cash flows. Bank:

  • reviews invoices and checks them against trade contracts and laws;
  • collects your accounts receivable and follows receipts
  • sends messages, reminders and invoice information
  • generates and sends you monthly reports

The solvency risk of customers is monitored

If you don’t check customers’ solvency, unexpected settlement problems may occur. The bank:

  • has a detailed database and a broad network of customers, so it evaluates the risk related to different companies and groups
  • regularly monitors the financial situation of customers
  • identifies the risk limit of customers

Benefits for the buyer of goods or services

With a factoring agreement, you can offer better settlement terms to your customers, for instance, postpone payment for a longer term. Better settlement terms improve the purchasing power of customers.

How is the service provided?
 

 

If you are working with foreign businesses, we suggest using the international factoring service.


For more information about factoring and the terms and rates please call our factoring specialists at +370 5 268 2822 or visit a SEB bank unit of your choice.

International factoring is aimed at companies selling goods or services to customers abroad. The seller and the buyer must be undertakings from different countries.

How is the service provided?

An international factoring agreement may be concluded between:

  • three parties (the seller, the buyer and the bank / factoring company) – this is direct factoring (ref. description of local factoring)
  • four parties (the seller, the buyer and the banks / factoring companies of the seller and the buyer) – this is indirect factoring (ref. the chart below)

We recommend choosing the indirect factoring service when the financial institutions of the buyer and the seller are partners. SEB Bank is member of the chain of factoring companies, Factors Chain International (FCI). The chain includes over 190 members from 58 countries, so we have partners worldwide.

Benefits for the seller and buyer of goods and services

  • Trade is financed under a single agreement across countries.
  • Both the seller and the buyer have to communicate only with companies that offer factoring services in their country (in the case of indirect factoring).
  • You can avoid confusions relating to a foreign language or cultural and legal disparities.
  • When paying for imported goods, buyers are charged local instead of international transfer fees (in the case of indirect factoring).

For more information about factoring and the terms and rates please call our factoring specialists at +370 5 268 2822 or visit a SEB bank unit of your choice.

First we suggest completing and submitting an electronic enquiry form and we will contact you shortly.

Application

With assistance from your account manager, you'll have to complete and file an application (with supplements):

Factoring application (XLS, 325 KB, in Lithuanian)

Required documents

  • The original and a copy of the company’s certificate of incorporation or an excerpt from the Register of Legal Entities, if the company was registered after 1.1.2010
  • A copy of the articles of association
  • The decision appointing the head of the company
  • A copy of the passport of the company’s head or of the person authorised to sign factoring agreements
  • Financial reporting documents (balance sheet, profit and loss account) for the last reporting period (year or quarter)
  • Copies of agreements with debtors

A complete list of documents can be obtained from your account manager.


For more information about factoring and the terms and rates please call our factoring specialists at +370 5 268 2822 or visit a SEB bank unit of your choice.

Terms of a factoring agreement

Basic terms  
Term of a factoring agreement up to 12 months
Grace period up to 120 calendar days
Factoring advance up to 90% of the invoiced amount
Settlement currency EUR or USD (currency on the invoice)

Please note that this financing method is not available for long-term financial obligations. Circumstances that may impede provision of factoring services:

  • outstanding debt of the buyer
  • contested obligations of the seller and the buyer

Charges

VAT should be added to the factoring fees.

Services Charges
Limit administration fee 0,6 per cent of the factoring limit (min EUR 500)
Funding fee (annual interest) as agreed 
Invoice acceptance fee as agreed (min EUR 3)
Amendment of the factoring agreement terms min EUR 100
Annual risk assessment of a new debtor (not insured by insurance company) EUR 15
Annual risk assessment of a debtor for insurance purposes (legal entity registered in the Baltic states) EUR 45
Annual risk assessment of a debtor for insurance purposes (legal entity registered in  a foreign country other than the Baltic states) EUR 75
Generating non-standard factoring report EUR 30
Assignment of receivables contract fee min EUR 300

 


For more information about factoring and the terms and rates please call our factoring specialists at +370 5 268 2822 or visit a SEB bank unit of your choice.

Contact

FACTORING SERVICES
Tel. (8 5) 268 1238
(8 5) 268 2645
Fax: (8 5) 262 1688
E-mail: faktoringas@seb.lt

ADMINISTRATION OF FACTORING SERVICES
Tel. (8 5) 2681133
Fax: (8 5) 268 1049
E-mail: faktoringo.operacijos@seb.lt

 

S|E|B

Attention! Your web browser does not correspond to the requirements needed to visit SEB website. Please change web browser or device that you use for browsing the site.

Attention! Your web browser does not correspond to the requirements needed to visit SEB website. Please change web browser or device that you use for browsing the site.