Legal Support for Factoring in Lithuania

Factoring in Lithuania — fast business financing under EU law. We support factoring projects in Lithuania: from drafting agreements and deal structuring to compliance and operational support.

Factoring allows a business to get fast financing within 24 hours against receivables and maintain stable cash flow. After paying deferred invoices, the factoring company collects payment from the debtor, retains the agreed fee and remits the remainder to the client.

Services

Our services

Factoring agreements

Preparing and negotiating factoring agreements and related documents

Deal structuring

Structuring factoring deals

Assignment of receivables

Advice on assignment of receivables

Security documentation

Preparing security and collateral documentation

Negotiations

Supporting negotiations between the client, the factor and the debtor

Risk analysis

Risk analysis, debtor checks and liability structure

AML/Compliance

AML/compliance framework

Debt collection

Advice on debt collection and enforcement

Internal procedures

Developing internal procedures and operational policies

What we support

Preparing factoring agreements, notifications and covenants, receivables assignment agreements, security documentation, amendments and side agreements.

Advice on the sale of receivables, assignment as security, recourse / non-recourse structures, the rights and obligations of the parties.

Supporting AML/CFT requirements, internal controls, governance structure, risk management procedures, risk analysis and liability structure.

Key features

Key features of factoring in Lithuania

No licence required

Factoring does not require a separate licence in Lithuania

Civil Code

Deals are governed by the Lithuanian Civil Code

Debtor notification

Debtor notification is usually mandatory

Liability

The client may retain liability for a defaulting debtor depending on the deal structure

Who it suits

Who factoring suits

Trading companies

Export / import business

Logistics & manufacturing

Fintech lending platforms

B2B service providers

Companies with deferred payment terms

Why choose us

Experience in factoring companies

Our lawyers have experience working in factoring companies

Deal support experience

We have experience supporting factoring deals

Cross-border projects

Experience supporting cross-border projects with debtors in different countries

Practical approach

A practical approach to compliance and risk management, drafting agreements to EU standards

Contact us

Ready to launch a factoring project in Lithuania?

We will help structure your factoring model, prepare documentation and ensure compliance with Lithuanian and EU legal requirements.

Contact Us

Have a Question?

You can fill the form, call us, write an email or text a message.

info@legalmechanic.com

Legal Support for Factoring in Lithuania