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Coop Pank started to offer the factoring service to companies

Coop Pank brought to the market the factoring service, the goal of which is to provide companies with a possibility to fund sales invoices of their customers by offering them longer payment periods, which in turn will help them to improve money flows and increase competitiveness.

Board Member of Coop Pank Hans Pajoma noted, that the bank’s clients have been expressing a lot of interest in the factoring service: “When developing the service, we took into account wishes and needs of our clients. With the use of factoring we want to help our clients improve their competitiveness and become more successful in achieving their goals.” The new service of Coop Pank will allow companies to take advantage of additional financing that is characterised by flexibility and correspondence to the actual sales volumes. “This way a company will be able to use sales channels that it has been unable to fund using own resources or other financing products. Our factoring service is directed at companies operating in Estonia, business of which is characterised by long payment periods,” explained Pajoma. Due to the present crisis that resulted from the spread of the Covid-19 virus, many companies need to take control over their money flows and retain liquidity more than ever before. “We believe that with our factoring solution we will be able to help many companies,” added he.

The factoring service means that the bank funds invoices issued to buyers and manages respective proceeds. The goal of the service is to improve liquidity, competitiveness, and payment history of a company, taking into account its development and seasonal nature of its operation.

According to Hans Pajoma, the strategic goal of Coop Pank is to create synergy between trade and banking sectors. “By bringing the factoring service to the market, we are making another step towards creation of such synergy, which will benefit our corporate clients who want to sell goods to Coop or to other customers,” said Pajoma.