Factoring

Based on the decision of Danske Bank Group to discontinue banking services in the Baltic States, no new financing agreements are concluded with Danske Bank A/S Lithuania branch.

More About Factoring

  • Seller

    Seller

    • A possibility to obtain funds without pledge
    • Improving the company's liquidity ratios
    • Buyers payment risk management
    • Easier planning of cash flows
    • Decrease of debt administration expenses
    • Flexibility in negotiation with buyers
  • Buyer

    Buyer

    • More extended payment terms
    • More purchasing power without an additional source of funding
    • Acquisition of new suppliers
  • Terms and Conditions

    Terms and Conditions

    •  Currency: EUR
    • Interest rate: variable
    • Loan term: up to 1 year
    • Credit Period: up to 120 days (in some cases there can be a longer period of time)
    • Factoring in advance: up to 90%
    • Collateral: trade credit insurance companies engaged in insurance, recourse to the seller, and (or) provide other collateral

  • Documents Required for Obtaining factoring

    Documents Required for Obtaining factoring

    • A filled out application to obtain Credit
    • Financial reports for the last two years (balance sheets, profit (loss) statements, and cash flow statements)
    • A list of debtors and creditors with the amounts and dates the indebtedness was formed
    • (This is a partial listing; full listing of required documents is provided at the end of the credit product application form available from the bank.)