From today JSC Capitalia will provide new finance product for small and medium enterprises – invoice purchasing. Invoice purchasing is an easy and convenient way for businesses to improve cash flow and increase working capital. With this product companies can sell their issued invoices for goods or services and receive payment already on the following day. This new and innovative financing product is a modern alternative to traditional factoring provided by commercial banks.
We are happy to have clients from various business sectors, who share their observations about our business financing products. We believe that it will be interesting and useful to our existing and future customers.
Capitalia financing is a good option for companies to whom traditional business loans are not available or suitable. Here you can find a short comparison of Capitalia microloan and traditional business loan.
Capitalia signs agreement with the Latvian Guarantee Agency and expands financing product portfolio introducing microloan with state aid. The program provides lower interest rate and commission fee, and offers loans for longer term than the standard Capitalia microloan. The state aid program is designed to improve the financing availability to small and medium companies
Capitalia offers new financing product - factoring - financial transaction based on invoices that are pledged as collateral. It is a widely used type of loan among wholesalers and manufacturers, and now it is available also to small and medium companies that cannot apply for bank financing.
Private entity ŠILUMA IR KO is producing storage tanks and bulk water heaters. Company is continuously expanding and has competitive adventage by supplying high quality products at attractive prices.
Even though banks’ lending policies are getting milder and business loan portfolio size is forecasted to continue increasing, many companies will still not qualify for bank or credit union loan. In previous survey of commercial banks by Bank of Lithuania results revealed expected increase in demand for business loans of 38%; however portfolio grew only by 2%. Furthermore current survey shows that increase in demand is going to be even bigger for next period and is estimated at 60%. As a result business loans portfolio will be increasing; however big part of this demand will not be satisfied by banks and credit unions.
Twice per year the Bank of Latvia conducts a commercial bank survey including research of demand for business loans. Most of the banks since year 2010 have reported increasing demand for the particular type of financing. The trend seems to be clear and evident as the Latvian economic situation has experienced solid growth that in turn stimulates the entrepreneurial optimism and the desire to invest in business development. However, according to the quarterly report of The Financial and Capital Market Commission, despite the increasing demand, the total commercial bank business loan portfolio is declining.