DEBIFO increased factoring portfolio by four times to EUR 2.5 million

During the second year of its activities the largest non-bank invoice financing company in Lithuania increased the factoring portfolio by four times – up to EUR 2.5 million and financed invoices for EUR 11.2 million. Invoice financing facility was used by more than 100 small and medium-sized businesses who financed 1 790 invoices.

“In the first year of our activities we still tested the demand of Lithuanian business for an invoice financing product, whereas the second year was focused on the active introduction of a non-bank invoice financing product to the market and could be characterised by active growth. Each month our service is used by an increasing number of new clients who appreciate quick solutions and a pleasant service and who later recommend us to their acquaintances,” says Justas Šaltinis, founder and CEO of DEBIFO.

The average amount of an invoice financed by DEBIFO was EUR 4 900, and the financing term was around 45 days. Most clients use the working capital received for business development: fulfilment of new orders, sales with payment postponement at a higher margin, acquisition of raw materials at more favourable prices. The majority of clients are small companies with a turnover below EUR 1 million.

“Our orientation towards small and medium-sized businesses is also demonstrated by the statistics provided by the Association of Lithuanian Banks, according to which we have almost 10% of the factoring market according to the number of clients yet less than 1% according to the size of the factoring portfolio. We can see that our decision to offer more sophisticated and customised financing solutions provides DEBIFO with a competitive advantage and has a positive impact on the entire Lithuanian market.”

DEBIFO, which started operations in May 2015, joined the largest peer-to-peer lending platform Mintos, was awarded by the Lithuanian Business Confederation for the best financial service of the year, and attracted investment from the Mundus investment fund.

The original of the article is published by Verslo Žinias (in Lithuanian).

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