To sell the products successfully, in a competitive environment, it is important to offer additional services, including terms of payment. Most often, under equal conditions, the buyer selects the supplier that can offer goods with delayed payments. At factoring, the supplier receives money for sold goods from Latvijas pasta banka at once, and the debt owed to the Bank is absorbed by the buyer at the moment of paying the bill.
The supplier can increase the volume and velocity of sales, when Using factoring,. This type of the loan is widely used among wholesalers and manufacturing companies who sell their products in Latvia and abroad.

Factoring conditions:

• currency: LVL, EUR, USD
  
• amount: no 30 000 līdz 1 500 000 EUR
  
• factoring amount: till 80% of the total bill
  
• contract term: till 1 year
  
• invoice payment term: till 90 days
  
• interest rate: depends on individual risk

• commercial mortgage for the right to demand*

• period of active business of the company not less than 2 years
  
• specific weight of own capital in the balance sheet at least 20%
  
• company must work with a profit (If in the last accounting period, there were losses, but until then the company worked with profit, gross margin of sales for the last accounting period must be positive)
  
• Liquidity of the company must be more or equal to 1

• You must open a current account in Latvijas pasta banka
  
• Has to fill the application form and other necessary documents.