Financing supplies is a short term (up to 180 days) financing instrument for current assets, applied on supplies of goods of Latvian companies, to be sold in the local market.
In financing supplies arrangements a company puts the stock of goods for sale in independent storage and Hanza Lizings pays up to 95 per cent of the sale price of the goods in advance to the supplier. Later, when the company sells the goods to its customers, it repays Hanza Lizings.
Opinions differ on whether financing supplies of goods, started by Hanza Lizings, will become a widely used service.
