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Bio-Venta SIA receives factoring of 1.8 million EUR from Baltikums Bank
Baltikums Bank and Bio-Venta SIA, the biggest biodiesel production and transhipment complex in the Baltic States, have entered into a contract granting a factoring limit of 1.8 million EUR with for a period of 1 year.
08.01.2015
 

Factoring is becoming increasingly sought after and frequently used financial instrument among entrepreneurs, providing them with the opportunity to effectively organize the financial flow in the company. The funding granted is aimed to increase the amount of biodiesel produced by Bio-Venta SIA, in particular by raising the sales volume in the Scandinavian market. In Latvia, the biodiesel consumption is seasonal, while in the Scandinavian countries B100 is consumed throughout the year. It is for this reason that the Scandinavian market is of strategic importance for Bio-Venta SIA Thanks to the factoring limit granted by Baltikums Bank, Bio-Venta SIA will increase the amount of available funds in the period when the domestic market sales volume is the smallest (November to March).

 

Bio-Venta SIA is the biggest biodiesel production and transhipment complex in the Baltic States. 70 % of the bio-fuel rapeseed quantity necessary for production is purchased from Latvian farmers, while the rest of the rapeseed used in production (30%) is imported. Biodiesel production process produces products such as rapeseed cake, potassium sulphate, and pharmaceutical grade glycerin. It is well known, that biodiesel is a resource consumed daily by both citizens and companies in their cars as an admixture to fossil diesel (in Latvia a mandatory 5% admixture of bio-fuel to fossil diesel is set from March to November). Thus, the cooperation between Baltikums Bank and Bio-Venta SIA in this economically difficult time is indirectly supporting the efforts of local grain sector farmers, providing positive cash flow and supplementing the state budget in the form of taxes.

 

“We are pleased that our factoring and trade finance services contribute to more rapid development of Latvian businesses and competitiveness in foreign markets,” notes Dmitry Latishev (Dmitrijs Latiševs), Chairman of the Board of Baltikums Bank. “One of strategic directions of our operations is to provide cooperation with local manufacturers supporting product exports both to the West, and the East. The Contract signed with Bio-Venta SIA is one of such positive solutions,” adds the Chairman of the Board of Baltikums Bank. Baltikums Bank is an international private bank that provides a wide range of financial and consulting services to companies and high net worth individuals.

 

Information prepared by

Daiga Klavina (Daiga Kļaviņa)

Public Relations Specialist of BioVenta Ltd.

Daiga.Klavina@biodiesel.lv

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