Factoring is a financing service that helps your company access all the working capital that you need easily and quickly. Factoring lets you offer your customers longer payment deadlines. Simply assign the outstanding sales invoices that you have sent to your customers to Luminor Liising and in return you get a comprehensive service for the financing and administration of your invoices and credit insurance if you need it to protect you against non-payment from customers.

With our factoring service you can assign your sales invoices to Luminor and at the same time offer your customers longer payment deadlines while keeping your working capital in circulation. Once you have delivered your goods or services to a buyer and issued an invoice, you can receive up to 90% of the invoice amount as an advance payment on the same day, as agreed in the factoring contract. You then get the rest when the buyer has paid the invoice to Luminor by the due date.

  • Factoring lets you offer your customers longer payment deadlines while also letting you use the money that the buyers have not yet paid to you.
  • The collateral for the financing is the sales invoices owed to your company and no additional collateral is normally required.
  • As an additional service, we can give you important information about the solvency and payment behaviour of your buyers. This way you can reduce your company's financial risks, especially when you enter new markets and start working with new buyers.
  • Luminor's home markets are Estonia's main export markets, which is why it is easy for us to make background checks of your buyers. We can offer you unified solutions for all the countries where Luminor operates.
  • Together with our partners we can offer you credit insurance to cover you against the risk of your buyers becoming insolvent or against political risk.

The factoring services package includes:

  • Administration of invoices
  • Administration of receipts
  • Communication with the buyer for clarification of receipts
  • Sending reminders to buyers if they are late with payments
  • Giving feedback to buyers if there are problems
  • Analysis of the creditworthiness of buyers
  • Credit insurance if needed
  • Communication with collection companies to collect debts from buyers, if this has been agreed between the parties
  • Status monitoring for the transactions under the factoring contract in real time and the reports that you need for your accounting, generated through the Netbank

Once we have agreed on the terms and conditions of a factoring contract and signed it, you will need to assign and submit all the invoices of each buyer covered by the factoring contract to us. Under the factoring contract, the sales process is as follows:


  1. You sell goods or services to a buyer covered by the factoring contract.
  2. You send the sales invoice with an assignment note to the buyer and Luminor Liising at the same time.
  3. Before financing the sales, Luminor Liising may request prior confirmation of the invoice from the buyer and transport documents showing the goods have been shipped or the service provided.
  4. Luminor Liising normally transfers the advance payment for the invoice to your current account on the day the invoice is received.
  5. The buyer pays the invoice to Luminor Liising.
  6. Luminor Liising pays you the rest of the amount on the invoice.
  7. Interest and processing fees are agreed in the contract.

Requirements for invoices

  • Invoices must meet the legal requirements
  • Invoices must state the payment date or payment conditions
  • Invoices must clearly and visibly state that the claim for payment has been assigned and the invoice must be paid to the current account of Nordea Leasing


Nordea Leasing has credit insurance contracts with its partners which mean we can give you secure insurance cover against non-payment from customers under the factoring contract.
We offer credit insurance against the payment risks from both foreign and domestic buyers. The main risks covered are long-term default or insolvency of the buyer, and political risks. Credit insurance does not cover invoices that have been disputed by the buyer. This means that you will need to settle any disputes yourself with buyers about contracts financed by factoring .
If a buyer covered by the factoring contract fails to pay an invoice with credit insurance cover by the due date, it is necessary to bring a collection company accepted by the insurer into the debt collection process within the set time limit. This is done by Nordea Leasing. With credit insurance cover your risk is limited to your excess.

  • The minimum contract value is 50,000 euros
  • The maximum advance payment is 90%
  • The contract fee is up to 1% of the contract value, minimum 320 euros
  • The interest rate depends on the currency of the contract, your financial status and the general risk level of the transaction
  • The invoice processing fee is 0.1–0.5% of the invoice
  • The payment deadline depends on the conditions agreed with the buyers
  • The credit insurance fee depends on the risk level of the buyer

Documents required for a factoring application

  • ApplicationPDF
  • Contracts with buyers (sales contracts, employment contracts, etc.) that are used for factoring invoices
  • The annual report for the previous financial year; the balance sheet, and the profit and loss statement for the current year
Please send these documents with any questions or requests to 1782@nordea.com. We will contact you soon.
Contract fee Up to 1% of the factoring limit but no less than 300€*
Increasing the factoring limit Up to 1% of the factoring limit being increased but no less than 200 €* 
Fixing a new buyer limit during the term of the contract Min. 64 €*
Extending or increasing a buyer limit Min. 64 €*
Sending a query about a buyer's credit insurance limit to the insurer at the request of a client 65 €*
Changing other important terms and conditions of the contract min 200 €*
Sending a written reminder to the buyer of a factoring client regarding unpaid invoice(s) 4 €*
Balance confirmations 10 €*
* VAT at the rate of 20% will be added to the price