Factoring

TBB liising offers factoring services to legal entities. It is a convenient tool for quickly raising working capital. Factoring increases the company’s liquidity and allows to optimize cash flows. The main security used for factoring is the right of claim against the buyer, which the customer assigns to the factor.

In factoring, both Estonian and foreign companies may act as buyers. TBB liising accepts as buyers financially reliable companies with a sound credit background and reputation. The seller and the buyer in factoring should be independent parties.

How factoring works:

1. The seller supplies goods or renders services to the buyer in accordance with the order.

2. The seller issues an invoice to the buyer, notifying the latter of the fact that the right of claim has been assigned to TBB liising.

3. The seller provides the invoice together the supporting documents to TBB liising.

4. TBB liising transfers the agreed advance payment to the seller’s settlement account.

5. When the payment becomes due, the buyer transfers the full invoiced amount to the settlement account of TBB liising.

6. TBB liising transfers the reserve, less the amount of costs, to the seller’s settlement account.

Standard factoring conditions of TBB liising:

Factoring limit Minimum 13 000 EUR
Contract currency EUR. Buyers may also pay in other currencies
Advance payment Up to 90% of the invoiced amount
Areas of activity Wholesale trade, transport, construction, production and industry
Minimum number of buyers 1
Invoice payment deadline Up to 120 days
Payment for the contract Up to 1% of the limit amount, minimum 150 EUR
Underlying security Right of claim against the buyer assigned to TBB liising
Contract validity term 12 months with the possibility of extension

To get a quotation for factoring please contact our managers at 6 301 309 or by email at faktooring@tbb.ee.

Application form

Factoring managers

Aleksandr Tšekmazov

Factoring Manager

Viru 9, Tallinn

T: +372 6301 309

E: A.Tsekmazov@tbb.ee

E: faktooring@tbb.ee