Rietumu Bank has offered its clients whose business involves trade operations, including international ones, a new credit product – non-recourse factoring.
Rietumu Bank finances cash deficiency which occurs in cases of deferred payments from buyers. When providing non-recourse factoring, a bank buys the right of claim to the debtor, having preliminarily checked its creditworthiness. For a trade company, it means that, having supplied the goods, the company immediately gets the bulk of the payment. Whereas the bank takes care of the rest – it administers accounts receivable, traces the payment terms, solves issues of delayed payments, etc.
The volume of bank financing can reach up to 90% of the transaction amount. The grounds for granting such financing are documents confirming the fact of fulfilled obligations on supply of the goods.
Factoring is an efficient solution to two problems simultaneously: financing of current assets and receivables management. Both aspects are certainly topical for dynamically developing trade companies.
On the one hand, usage of bank financing allows a trade company, without creating an additional deficit of current assets, to provide its buyers with a possibility of deferred payment and get additional competitive advantages, increase sales, tap new markets. On the other hand, the attraction of a bank allows traders to limit their risks, as the bank evaluates the creditworthiness of the debtors, establishes limits and traces the discipline of payments.
Rietumu Bank offers factoring services to companies operating on the Baltic and international markets.
Basic terms and conditions of factoring at Rietumu Bank: Financing proportion: up to 90% of the presented invoice amount for the goods supply
Financing rate: from 4% p.a.
Grace period for the financed deferred payment: up to 120 days
Eleonora Gailisha Mass Media and Public Relations
Phone: +371-67020506
Fax: +371-67020563
E-mail:
egailisha@rietumu.lv
