12 months
Agreement term
120 days
Deferred payment for buyers
90%
Immediate payment of the invoiced amount (advance rate)
100 000
Euros
Factoring for your business needs
Domestic
- Factoring directed towards local trade and buyers
- Prompt payments and improved cash flow
- Incoming payment and debt management
Export
- Factoring directed towards export trade and foreign buyers
- Buyer credit risk evaluation by international credit company
- Credit risk insurance
Supply Chain Financing
- Opportunity for the strong buyers to improve their working capital and expect longer payment terms
- Buyer driven relationship to include SEB in the Supply Chain
- Sellers can improve their funding on the basis of strong buyer’s credit rating and get payment after buyer’s approval of invoices.
Recourse factoring, where sellers are obliged to pay invoice after 30 days overdue if buyer has not made the payment to the bank.
SEB together with a trusted insurance partner will handle the debt collection if a buyer fails to pay an invoice. SEB is the beneficiary in the insurance contract. Insurance does not indemnify for disputed invoices. Making the sales contract as accurate as possible and documenting all communication between the parties makes the resolution of possible disputes easier.
If you have already entered into a valid credit insurance contract yourself, SEB offers you full recourse factoring. In such a case, you refund the advance payment to SEB if the buyer is in debt and you have to follow the terms and conditions agreed with your insurer in any actions required under the insurance contract. SEB will be the beneficiary in the insurance contract.
Factoring limits and sellers included in the program are subject to buyer's decision.
How does factoring work?
- Seller issues the invoice and sends the copy to SEB
- SEB usually pays the advance part of the invoice to your current account on the same day
- The buyer pays the invoice to SEB at due date
- SEB pays to the seller the difference in the advance part and the amount received from the buyer
Additional info and fees
Required documents
- Filled in factoring application
- Sales and purchase ledger information (major debtors and creditors)
- Turnover split by buyers
- Commercial contracts with the buyers, whose invoices you would like to be factored
- Audited annual report for the previous financial year; balance sheet and income statement for the last quarter
Valid from 01.01.2021
| General transaction and service fees of Factoring (1) | |
| 1. Conclusion and/or extension of a factoring agreement | Fee as agreed, min €200 |
| 2. Changing the agreement limit | Fee as agreed, min €200 |
| 3. Invoice handling fee | Fee as agreed |
| 4. Adding/changing obligor limit (payers without credit insurance) | € 35 |
| 5. Adding/changing obligor limit (payers with credit insurance) | € 55 |
| 6. Changing other terms and conditions of the agreement (excluding changing and/or extending the agreement limit) | € 65 |
| 7. Preparation of non-standard factoring reports and certificates | €30 per hour, min €30 |
(1) Service fees include VAT as per Value-Added Tax Act
Simple to apply
1.
Register for consultation or contact your client Executive and we will advise you
2.
Send the filled application and required documents to info@seb.ee
3.
After a positive decision, sign the agreement
Other financing solutions for your purchases and trade
Overdraft
Flexible option for using extra cash, offering the possibility to have a negative balance on company’s account for financing working capital.
Trade financing
Financing and managing the risks of your company’s trades
Working capital loan
To cover temporary shortage of working capital or expenses.
Need advice on financing?
- Our client executives will help you find the suitable financing solution for your business.
- We have a dedicated team of professionals you can trust.
