Faktoro will lend an additional EUR 15 million in the Baltics within six months

Faktoro, one of the largest alternative financiers, has signed an agreement for a EUR 15 million loan from a European investment management company. The amount raised will be used for factoring services for small and medium-sized businesses operating in the Baltic States.

“Despite the macroeconomic uncertainty that has persisted over the last couple of years, we are seeing a strong demand for business financing from our customers. In a recovering market, as always, there are more and more businesses making bold, higher-risk decisions that banks are hesitant to finance. This loan will allow us to respond even more actively to this demand, especially in the retail and manufacturing sectors. Moreover, it is an indication of the investor’s confidence in our region,” says Algirdas Gutauskas, CEO of Faktoro.

The agreement will be addressed to companies using factoring services and operating in the Baltic States.

“The trust of such a large investor is an important recognition of the work of our team. Since our inception eight years ago, we have not hidden our ambition to grow. However, we have strived to do so in a sustainable way for both investors and clients. This agreement opens up a new phase and opportunities for our growth,” says Algirdas Gutauskas.

Faktoro portfolio currently consists of EUR 25 million, 60% of which is factoring. Founded in 2016 and operating in the Baltics and Finland, the company will cooperate with the European Investment Fund (EIF) and Investment and Business Guarantee (Invega) from 2021 onwards to provide guarantees to small and medium-sized businesses and soft loans for the operation and development of companies. In May this year, a new agreement was signed with the EIF for guarantees that will allow lending of €55 million to small and medium-sized enterprises, as well as an agreement signed with the EIF in June for a loan of almost €2 million for business development.