Invoice financing for a producer and wholesaler of workwear in Latvia (III)

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Summary
The Company founded in 2019 is a producer and wholesaler of specialized workwear, gloves, and boots. Main customers of the Company are both state and private producers and service providers such as Latvijas finieris, Augstsprieguma tīkls, Empower, Sadales tīkls, UPB, and others.
The Company won a sizeable procurement of Sadales tīkls for the delivery of specialized workwear for the total amount of more than EUR 250,000. The order will be executed in 4 tranches. Three out of four tranches in the total amount of EUR 225,000 are completed and repaid by Sadales tīkls directly to Capitlia’s account.
To make the final settlements with suppliers, the Company seeks financing of a specific invoice issued to Sadales tīkls in the amount of EUR 49,316.28. Investors are offered a 15.72% annual interest rate (1.31% monthly) and the invoice will be repaid by the direct payment of Sadales tīkls on 11th of February, 2021. The factoring agreement is secured with a commercial pledge on the Company's assets worth EUR 170,025 and the owner's personal guarantee. Besides, there is a three-party agreement concluded between the Company, Capitalia, and Sadales tīkls, that guarantees direct payment to Capitalia's account. 
The Company is a repeat client of Capitalia and has used factoring financing for more than EUR 375,000. 

There are a number of factors that make lending to the Company an attractive opportunity and the main highlights are as follows:
  • Direct payment of Sadales tīkls to Capitalis's account is guaranteed by the three-party agreement concluded between the Company, Capitalia, and Sadales tīkls. Besides, Sadales tīkls already has repaid on time 5 invoices financed by Capitalia in the total amount of EUR 251,000.
  • The factoring agreement is secured with a commercial pledge on the Company's assets worth EUR 170,025 and the owner's personal guarantee.
  • The Company is a repeat client of Capitalia that has used invoice financing for more than EUR 375,000.
  • The Company has a well-diversified customer base consisting of well-known and reputable companies.
ID 12531-6-LV
Industry Manufacturing, wholesale
Location Latvia
Loan type Invoice purchasing
Term 1 month
Expected return 15.72%
Interest rate Monthly
Amortisation At the end of the term
Risk grade B (80 out of 100)
Personal warranty Yes
Collateral Pledge on the Company's assets worth EUR 170,025
Capitalia's cofinancing 3316.28
Target amount 49316.28
Successfully funded