Open website’s mobile version Top

Business

Factoring

Factoring

Change your invoices into cash flow

  • Quick and easy financing and invoice management
  • Enables to offer longer payment terms to buyers
  • Credit insurance reduces credit risks

Factoring is financing of receivables and invoice management. Factoring allows you to offer your clients longer payment deadlines whilst improving your liquidity.

Factoring service is offered by AS SEB Liising.

Standard terms and conditions of factoring
Contract limit starting from 100 000 euros
Debtor limit for every buyer at least 5 buyers should be included to a factoring contract. All invoices issued to these buyers should be assigned to SEB Liising
Advance rate up to 90%
Contract term up to 12 months, can be extended by mutual agreement
Contract fee according to price list
Invoice processing fee according to price list
The payment term of invoices depends on the terms and conditions agreed in the commercial contract.

 

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:

Faktooring - Müügiprotsess ja raha laekumine

  1. You sell goods or provide a service to a buyer listed in the factoring contract.
  2. You have the invoice approved by the buyer.
  3. You send the invoice to SEB.
  4. SEB usually pays the advance part of the invoice to your current account on the same time when SEB received the invoice.
  5. The buyer pays the invoice to SEB.
  6. SEB pays you the difference in the advance part and the amount received from the buyer, withholding the interest due to SEB.

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.

Valid from 01.12.2018

Description of service Price in euros
General transaction and service fees of Factoring (1)  
Conclusion and/or extension of a factoring agreement Fee as agreed, min €200
Changing the agreement limit Fee as agreed, min €200
Invoice handling fee Fee as agreed
Adding/changing obligor limit (payers without credit insurance)

€25

Adding/changing obligor limit (payers with credit insurance) €30
Changing other terms and conditions of the agreement (excluding changing and/or extending the agreement limit) €65
Preparation of non-standard factoring reports and certificates €30 per hour, min €30

The establisher of the price list reserves the right to make changes to the price list.

(1) Service fees include VAT as per Value-Added Tax Act

Base rates

Valid as 09.07.2020
1-month EURIBOR® -0,4980
3-month EURIBOR® -0,4380
6-month EURIBOR® -0,3280
12-month EURIBOR® -0,2630
EONIA® -0,4640
€STR -0,5490
Bank's base interest 0,0000
SEB base rate 0,0000
EURIBOR® historical data
EONIA® historical data
€STR historical data
SEB base rate historical data
Base rate information

Euribor (benchmark) and Eonia (benchmark) are published by the European Money Markets Institute (EMMI).
The base interest rate of the bank is set and published by AS SEB Pank.
The set base interest rate may decrease or increase over time. These changes affect the contractual interest rate. For example, if the new base interest rate has increased compared to the previous base interest rate which was in force on the day the agreement was concluded, the interest payments will also increase.

Contact

S|E|B

Tähelepanu! Teie veebilehtiseja ei vasta SEB kodulehe külastamiseks vajalikele nõuetele. Palun vahetage veebilehitsejat või seadet, millega te veebilehte sirvite.

Attention! Your web browser does not correspond to the requirements needed to visit SEB website. Please change web browser or device that you use for browsing the site.

Внимание! Ваш браузер не отвечает требованиям, необходимым для посещения сайта SEB. Просим поменять браузер или устройство, при помощи которого вы производите поиск в браузере.