Capitalia offer a new investment opportunity – invoice financing

09.02.2016

mintosblog

We are delighted to announce that from today, Capitalia, a lender to a small and medium-size businesses, offer a new loan product on the Mintos platform – invoice financing.

The expansion of cooperation with Capitalia offers wider investment opportunities to investors and more accessible and cheaper financing for small and medium-size companies in the Baltic states.

It is expected that the net annual yield on these loans will be 12%.

Capitalia finances up to 90% of the total unpaid invoice. On average, the invoice amounts vary between EUR 1000 and EUR 20 000. In most cases, the payment terms are between 30 and 60 days. All the loans that are placed on the platform have already been financed by Capitalia, so that investors can start earning from the moment they invest.

This financing instrument is used mostly by manufacturing and wholesaling companies, which supply goods to well-known retail chains, such as Rimi and Maxima. The small and medium businesses use these loans for developing their operations, as well as in unexpected situations as one would use a line of credit.

By working in the area of small and medium-sized business financing for more than five years, Capitalia has gained extensive experience in risk analysis. In lending against invoices, both the loan recipient and the invoice payer are evaluated using more than 50 financial, market and other indicators.

Although Capitalia started to offer loans against invoices a little more than three months ago, more than 30 companies in Latvia and Lithuania have sold invoices for a total of more than EUR 1 million.

In January 2016, Capitalia announced that it was expanding operations into Estonia, offering a full assortment of financing options to companies, including the service of buying invoices. Capitalia’s management forecasts that in the near future loans issued in Estonia will be available on the Mintos platform. The Mintos team wishes the best success to Capitalia in ensuring more accessible financing to small and medium-sized businesses in the Baltic states.

Up until now, investors have invested more than EUR 1.3 million in loans by Capitalia that are available on the platform.

Capitalia is the leading lender to small and medium-sized businesses in the Baltic countries and is listed on the NASDAQ Riga bourse. It offers companies a simple and convenient financing alternative to the banks. During its time in operation, Capitalia has financed more than 500 companies, investing more than EUR 10 million in their development.

Capitalia’s financial data is available on the NASDAQ Riga home page.

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