Leasing and Factoring

Installment payments – a flexible financing arrangement

Installment payment plans can be used for financing all kinds of items, such as machinery, vehicles, etc. While the item is owned by your company, it also acts as the bank’s collateral for the investment. Normally, the item represents the only such collateral, increasing your scope to make other investments. You report the item as an asset in your balance sheet, amortizing the cost in the normal manner. Installment payments are a flexible financing arrangement. The bank can tailor an installment payment plant to the particular needs of your business. Installment payment plans provide you with a complete overview of the costs. You can always access continuous information on interest rates, payments and remaining debt during the contract period. It is also possible to make additional payments or pay off the remaining debt within the contract period.

Leasing

Leasing can be used for financing all kinds of items. The item remains the property of the bank and is therefore not reported in your company’s balance sheet. Leasing charges are fully deductible against your company’s earnings. Leasing facilitates budgeting and cost review, as you know what your costs will be from month to month. Leasing arrangements also make it completely possible to change the item concerned during the contract period.

Invoice factoring

Invoice factoring entails pledging your accounts receivable as collateral against a loan from the bank. This frees up operating capital otherwise tied up in accounts receivable, transforming them into liquid funds. Normally, the accounts receivable are the sole collateral, increasing your scope to make other investments. In invoice factoring, Swedbank Finans is stated as the payee on the invoice, which, as experience shows, increases customers’ eagerness to pay on time. Your solvency is thus enhanced. The service includes reminders, interest charges on late payments and debt recovery. Efficient handling of demands for payment reduces the risk of customer losses. As a supplementary service, we will print and distribute invoices for you.