What is factoring?

What is factoring?

Factoring is the right choice for companies whose current assets largely comprise invoices accruing from buyers.
Factoring is the assignment of outstanding trade receivables to ensure available funds at the moment you need.
This way, you can avoid 30-, 60-, 90- or 120-day wait times.

Advantages

  • Factoring enables you to offer buyers longer payment deadlines
  • Factoring frees up your company’s circulating assets
  • Factoring simplifies cash flow planning and the collection of receipts
  • Factoring increases your control over debtors by improving their payment discipline

We offer the following factoring services:

  • Internal market factoring

    Internal market factoring is suitable for Estonian companies whose buyers are located in the Baltic States. We offer you financing of invoices as well as management and collection services and minimisation of the payment risks associated with uncollectible accounts.

    We offer internal market factoring to companies operating in Estonia and the Baltic States

    With the assistance of internal market factoring you can offer buyers longer payment deadlines, at the same time avoiding a deficit in available capital – which is often concealed within accounts receivable. Internal market factoring also helps you maintain better control and discipline over buyers.

    Internal market factoring enables:

    • immediate financing of invoices;
    • management of invoices and collection of incoming payments from buyers;
    • minimisation of the payment risks association with uncollectible accounts.

    You will receive money immediately

    Using the factoring, you will receive money immediately. We will finance invoices submitted by you within couple of working days up to 90%. The security is an invoice filed to the buyer, i.e. the arising financial claim against the buyer.

    You will save time and resources

    Assign invoices to us, and we will deal on your behalf with the management and collection of invoices. You will see an overview of all transactions at the Internet bank.

    Payment risks are lowered

    Sufficient information or resources for thorough analysis of buyers need not be available at all times. If necessary, we will perform buyer analysis on your behalf.

  • Export Factoring

    * We offer you immediate financing of invoices as well as management services and minimisation of payment risks. Through our international factoring service you have at your disposal an international chain of strong partners. Read more about export factoring.

    Export usually involves large, long-term, profitable orders - it represents an opportunity to do successful business.

    International sales also involve a great deal of risk. Problems could manifest themselves in assessing the creditworthiness of foreign buyers or in a lack of information about the local business environment. You also have to take into account unusually long payment deadlines, payment delays and potential loss from sales. The solution is export factoring.

    Export factoring enables:

    • immediate financing of invoices;
    • management of invoices and collection of incoming payments from buyers;
    • minimisation of the payment risks associated with uncollectible accounts.

    Money in hand with no delays

    When you use factoring you get your money straight away. We finance -90% of the amount of the invoices you submit. The invoice presented to the buyer forms the collateral, i.e. the financial claim that has arisen against the buyer.

    Payment risks are reduced

    The analysis of purchasers is carried out on your behalf by our insurance partner in the foreign country. Should a purchaser prove to be insolvent, the loss is covered by the insurance company.