Factoring for food supplement wholesaler with major retail chain clients
Kokkuvõte
UPDATE: The Company has increased flow of orders and we are increasing the factoring limit by an additional EUR 40,000 reaching a total limit of EUR 130,000. New investments will start financing invoices received from the 1st of December. We must note, that in case the factoring limit would be decreased back to the original amount, these additional investments would be repaid first. The factoring agreement term is 07.07.2021. Since 2013 the Company provides wholesale of food additives and vitamins in Latvia, western Europe, Russia, and Belorus. The Company is selling around 90 different products such as vitamin C, magnesium, Omega6, etc. Production is outsourced but the packaging is performed by the Company. Products are partly sold under the Company’s brands, partly produced for other companies. The Company is currently looking for a factoring solution in the amount of EUR 60,000 for 12 months period. Financing provided will be secured with the owner’s personal guarantee. As additional security, a 3-sided agreement will be signed and all Maxima Latvija (the Buyer) invoices will be paid directly to Capitalia’s account. Lenders are offered a 12% annual interest rate (1% monthly) with principal repayment at the end of the term.
There is a number of factors that make lending to the Company an attractive opportunity and the main highlights are the following:
- The financing is secured with a personal guarantee of the owner;
- The Buyer will pay for financed invoices directly to Capitalia account;
- The Company has a long cooperation history of 7 years with 2 main retail chains in Latvia: Rimi and Maxima;
- The Company does not have any other financial liabilities.
Financing product
The duration of a factoring contract is 1 year and we seek financing for the full approved credit limit of EUR 60,000. If the credit limit is regularly not used up by the client, we will reduce the financed amount by returning money proportionally to the investors. Alternatively, if the client would seek an increase in the credit limit, we will offer to investors to invest additional capital.
The duration of a factoring contract is 1 year and we seek financing for the full approved credit limit of EUR 60,000. If the credit limit is regularly not used up by the client, we will reduce the financed amount by returning money proportionally to the investors. Alternatively, if the client would seek an increase in the credit limit, we will offer to investors to invest additional capital.
Further notes about interest calculations:
A) Interest will be paid every month until the 5th day for the interest charged in the previous period. Under the factoring contract Capitalia charges interest upfront for the entire period of the financed invoice;
B) There can be gaps of a few days between invoice repayment and new invoice placement hence the actual return might be lower than the interest rate mentioned in the Summary section.
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