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, Latvijas dzelzceļš,  UPB, and others.

Since customers usually pay with a deferred payment, the Company seeks factoring financing with a total limit of EUR 50,000. Investors are offered a 12% annual interest rate (1% monthly). The factoring agreement is secured with a commercial pledge on the Company's assets worth EUR 222,783 and the owner's personal guarantee. Besides, there is a three-party agreement concluded between the Company, Capitalia, and each buyer whose invoices Capitalia will finance. 

The Company is a repeat client of Capitalia and has used factoring financing for more than EUR 425,000.

 

The duration of a factoring contract is 1 year and we seek financing for the full approved credit limit of EUR 50,000. 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. 

 

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 in the range between 10%-11.5%.