We advise you to agree in the terms and conditions of the sales transaction with your buyers before you apply for factoring.

Factoring applicants must submit the following documents:

• application on written form;
• commercial contracts with the obligors (sales contract, contract for services, etc.), which are the bases for the invoices you would like to be factored;
• audited annual report for the previous financial year and balance sheet and income statement for the last quarter;
• additional documents (cash flow forecast, business plan, contracts with important suppliers, etc.) if necessary.

The following documents are required for entry into a factoring contract:

• send an application to
• contact a Client Executive

Once you have entered into a factoring contract with SEB, you must submit the invoices meant for the buyers listed in the contract to us. The sales process and receipt of money take place as follows:

An overview of your factoring transactions is available to you in Internet Bank for Business.

Requirements for factoring invoices
You must send all invoices to be submitted to your buyers, including credit invoices, to SEB. It is important to make sure that

• your invoices meet the requirements set out in effective legislation;
• the payment deadline or payment term is noted on the invoice;
• a note, which advises the buyer that the claim is assigned and must be paid to SEB, is displayed in a visible sport on the invoice;
• the invoice is approved by the buyer (except export invoices);
• the documents evidencing transport of goods are enclosed with export invoices and approved by the carrier; and
• the delivery and acceptance certificate of work or services is enclosed with invoices relating to services. 

Factoring with credit insurance helps to reduce the risks associated primarily with foreign buyers.

SEB together with our insurance partner will handle the debt collection if a buyer fails to pay an invoice that was financed with factoring. SEB is the beneficiary in the insurance contract.

Insurance does not indemnify for disputed invoices. You have to resolve any disputes with your buyers about the quality of goods and the performance of the sales contract. Making the sales contract as accurate as possible and documenting all communication between the parties makes the resolution of disputes easier.

If you have already entered into a valid credit insurance contract yourself, SEB offers you financing of receivables with full recourse. 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.