Factoring for fish product producer and wholesaler

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Summary
UPDATE: The Company has increased flow of orders and we are increasing factoring limit by an additional EUR 40,000. New investments will start financing invoices received from the 3rd of August.  We must note, that in case factoring limit would be decreased back to the original amount, these additional investments would be repaid first.

The Company has been established in 1998 and does fish product production and wholesale trade of finished products and raw processed fish for other manufacturers. The Company is working with the largest food retail chains in Latvia. Part of the production is made at the Company’s manufacturing site in Talsi while the rest is outsourced. All products are sold under the Company’s trademark. The Company is currently looking for a factoring solution in the amount of EUR 150,000 for 12 months period. Financing provided will be secured by receivables from the two largest retail shop chain stores in Latvia. In addition, financing is secured with a personal guarantee from the owner.  The Company has excellent previous payment discipline and successfully used over EUR 1.2 mil. of factoring service from Capitalia. The buyers pay financed invoices directly to Capitalia bank account. Lenders are offered a 12 % annual interest rate (1% monthly) with principal repayment at the end of the term. It should be noted, that the annual interest rate in the current risk class is higher than usual due to the new financing product and current economic situation.

There is a number of factors that make lending to the Company an attractive opportunity and the main highlights are the following:
  • The owner has more than 8-year experience in the industry;
  • The Company's client portfolio consists of big stable companies, including Maxima Latvija, SIA and Rimi Latvia, SIA;
  • The financing is secured with a personal guarantee of the owner and is backed by issued invoices;
  • The Buyers pay for financed invoices directly to Capitalia account;
  • Excellent previous payment discipline with EUR 1.2 million used factoring
Financing product
The duration of a factoring contract is 1 year and we seek financing for the full approved credit limit. If the credit limit is regularly not used up by the client, we would reduce the financed amount by returning money proportionally to the investors. Alternatively, if the client would seek an increase of credit limit, we will offer 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.
ID 12488-2019-5
Industry Manufacture, wholesale
Location Latvia
Loan type Invoice purchasing
Term 12 months
Expected return 12%
Interest rate Monthly
Amortisation At the end of the term
Risk grade A+ (96 out of 100)
Personal warranty From owner
Collateral No
Capitalia's cofinancing 10000
Target amount 190000
Successfully funded