Factoring transactions of Šiaulių Bankas shall be backed up by Invega guarantees


Šiaulių Bankas and Investicijų ir verslo garantijos UAB (Invega) signed a cooperation agreement regarding provision of portfolio guarantees to factoring. This agreement will enable micro, small and medium-sized enterprises (SMEs) to take advantage of commercial transaction finance in a form of factoring in cases where, as a general rule, they cannot expect funding due to exposure to a higher risk. 

"As a market leader in the field of financial instruments such as financing with portfolio guarantees and sharing risk loans we can see their importance - such financial instruments allow financing those businesses that could not receive finance in any other form. A portfolio guarantee for factoring will provide even more financing opportunities to our clients", - says Chief Executive Officer of Šiaulių Bankas Vytautas Sinius.

"One of the key factors hindering expansion of business is the limited financial resources that are necessary cooperating with business partners in both local and international markets. Portfolio guarantee factoring will allow companies not only to reduce the financing risk, but also to supplement working capital and expand sales or provide their customers with longer periods to settle for goods or services", - says Director General of Invega Kęstutis Motiejūnas.

The scheme of portfolio guarantees for factoring transactions will be based on the risk-sharing principle. A financial institution that receives a portfolio guarantee shall form a factoring transaction portfolio. An SME included into the portfolio will transfer to the financial institution its buyer's obligation to pay for the goods or services and will receive a factoring advance for it.

Each factoring transaction in the portfolio will be subject to 80% guarantee, however, the total amount of payments cannot exceed the cap of 20% from the amount of formed  factoring transaction portfolio guarantees. The guaranteed portfolio can include both export and local factoring transactions with recourse. The maximum  factoring limit  per transaction  could reach EUR  1.875 million.

Invega and Šiaulių Bankas have agreed that  in the next 3 years Invega will guarantee factoring transactions  with a total limit reaching EUR 15 million.

Šiaulių Bankas also provides its corporate clients with loans and leases backed up by Invega portfolio and individual guarantees and sharing risk loans.