Frequently asked questions

Here are the most frequently asked questions from customers. If you still do not find the answer to your question, please contact us.

What is factoring?

Factoring is the financing of the invoices you issue to your customers. You transfer Faktoro the rights of claim according to the invoice issued to your buyer (debtor) with a deferred payment term. Faktoro immediately pays you up to 90% of the invoice amount. Upon payment of the invoice by the debtor, Faktoro deducts the fee for the factoring service and transfers you the balance.

Factoring is the most convenient financing tool for small and medium businesses as financing grows along with growing sales.

The legal definition of factoring is provided for in Article 903 of Book VI of the Civil Code of the Republic of Lithuania: Concept of the factoring agreement

What is classic (open) factoring?

Financing of invoices that you issue to customers in Lithuania. The cheapest and fastest way to turn invoices into cash!

What is silent factoring?

Financing of invoices that you issue to customers in Lithuania or abroad, when your customer is not informed about the financing.

What is reverse factoring?

Financing of invoices issued to you by suppliers in Lithuania or abroad. It is a suitable financial product when you have a buyer to whom you will supply goods but do not have working capital to buy those goods.

What is export factoring?

Financing of the invoices you issue to customers abroad. Faktoro bears all the risk of the client’s insolvency, so you don’t have to worry about the reliability of the partner.

In what cases is factoring more beneficial than a loan?
  • You will receive the money faster – in just one day;
  • You will receive the money more conveniently – there is no need to submit so many documents and engage in tedious procedures. Everything can be arranged online;
  • You will not be charged any additional fees – obligation (limit), the conclusion of the agreement, invoice collection and administration;
  • You can choose to finance individual invoices, no need for long-term contracts;
  • No need to pledge property, you will save on property pledge fees;
  • Even a small amount will be financed;
  • No personal guarantee required;
How does factoring work?
  • The seller issues invoices for the goods or services provided with deferred payment.
  • This invoice is forwarded to Faktoro.
  • Faktoro transfers up to 90% of the invoice amount to the seller.
  • Upon receipt of payment, Faktoro deducts the financing fee and transfers the balance to the seller.
Who is eligible for Faktoro financing?

Companies that:

  • Issue invoices with a deferred (but not overdue) payment term.
  • Sell goods to financially stable companies.

We even finance customers who have loans or other obligations to other credit institutions. We are also a handy bridge financing tool while you are managing financing at a bank.

What amounts do you finance?

We finance invoices from €1,000 to €1,000,000. In case you need more, please contact us and we will resolve your working capital issue.

How to receive Faktoro funding?

First route:

Second route:

  • Call +370 681 50 406 and we will take care of everything.

We will submit the financing proposal within one business day. You will be able to confirm it with a mobile signature.

How much does a factoring service cost?

From 0.5% to 2% for a 30-day deferral period (calculated on the amount of the invoice paid in advance).

The financing cost is individual and calculated separately each time. It depends on:

  • The amount to be financed;
  • Invoice deferral period;
  • Type of factoring;
  • Your buyer’s financial situation and annual turnover;
  • The degree of risk of the transaction.

Fill out the form to find out the cost of funding.

Are there really no hidden fees?

All FAKTORO’S applicable service fees are listed on our page. The amount of the transaction-specific factoring fee will be provided to you prior to the conclusion of the agreement and will be final. We are currently the only factoring supplier offering a fully transparent price – the only fee expressed as a percentage of the amount paid in advance per month.

What documents are to be submitted to receive funding?

To receive financing, attach the agreement with the client, the invoice you wish to be financed, and the deed of transfer of goods/services when filling out the form.
No need to submit company financial statements!

Is it possible to finance only a share of the invoice amount?

Yes, we can finance as much as you need and for as long as you need. The fee is calculated on the amount of the invoice paid in advance.

Will my client be informed about factoring?

In the case of classic (open) factoring, yes.

In the case of classic factoring, your client is informed that the money for the issued invoice must be transferred to Faktoro’s account instead of yours.

In the case of silent factoring, no.

If for some reason you do not want the buyer to be informed, you can use the silent factoring service.

Does factoring affect my credit history?

No, because factoring is not a loan. Other credit institutions are not informed about the use of factoring, and factoring is not shown in your balance sheet either – it is a transfer of money from Receivables to Assets, Cash and cash equivalents. Factoring is basically the sale of debt.

Will we incur any additional costs during the financing if the buyer does not pay the invoice transferred to Faktoro on time?

If your client is late in paying, we will continue to charge a financing fee of the amount specified in the agreement. The fee is calculated by days. We will notify you immediately of your customer’s delay in paying the invoice, so you will be able to remind the customer of the payment deadline. It is important to know that you will be able to enforce the provisions of the contract directly on the buyer in case of non-compliance with the terms of the contract. You will also be able to repurchase claim rights from Faktoro under the invoice to avoid further financing fees due to late payment.

Faktoro states that decision on financing and disbursement is completed in 1 business day. Is this deadline met?

Decision on financing is done in one business day! After you fill the application and submit all required documents, disbursement will be done the same day!

Is there a possibility to apply and sign contracts in person without using the self-service system?

Yes, there is. If you are not able to submit documents electronically, please contact us at +370 681 50 406 and we will arrange an appointment. We are always happy to have you over and talk over a cup of coffee!

Do you finance overdue invoices?

We do not finance overdue invoices.

What is a recourse?

Recourse is the financial responsibility of a customer who uses invoice factoring in the event where the buyer fails to pay the invoice.

Faktoro offers invoice financing without recourse. When financing the invoice without recourse, it is no longer necessary to follow the invoice payment term. Also, if the buyer becomes insolvent, you are no longer responsible for paying the invoice.


How does Faktoro differ from debt collection?

Faktoro does not provide debt collection services. We finance invoices that are not yet due. However, we can recommend you debt collection partners Conlex. Also, we can offer purchase and management services for the entire company’s receivables; this service allows you to sell overdue invoices together with all receivables.

Can Faktoro finance all company invoices?

Faktoro provides purchasing and management services for the entire company’s receivable portfolio. This product allows you to finance all invoices issued, even those that are past due, along with invoices that are not yet due.

What additional benefits does Faktoro provide?

Faktoro can not only provide you with financing, but also advise on the company’s financial management, optimal financing, and long-term strategic decisions. An experienced team is always ready to help you at no extra charge, so you will always feel confident when making important decisions. We can also assess your customers’ risk free of charge!

Stop by for a cup of coffee and a consultation!

We are satisfied with Faktoro’s services, everything goes smoothly. Can we expect better financing conditions?

Yes! We constantly improve financing conditions for long-term partners. Faktoro seeks long-term cooperation, so we reduce the cost of financing for partners and increase the limit and advance.


How does Faktoro differ from other business financing companies?
  • FAKTORO does not require property pledge and personal surety.
  • FAKTORO applies a single, competitive and transparent fee. No one else in the factoring market offers that.
  • You are in the hands of a personal manager who has the answers to all your questions and is available for a consultation whenever you need. No more music on the other end of the phone?

If you already received a factoring offer, contact FAKTORO and see if there are better terms available!