Financial lease

The lessee pays the bank the full purchase price of the property, including interest and VAT, during the leasing period, and becomes the owner of the property at the end of the leasing period.

Inverse leasing

The lessee sells his property to the Bank and on the basis of leasing contract buys it by installments, i.e. Leasing property seller and lessee is the same person.

Leasing with residual value

The lessee pays part of the price of the property as specified in the leasing contract during the leasing period, and the remaining part of the property price is left to be paid with the final instalment, which is paid by the lessee. The remaining part of the lease is paid out over an agreed period of time, or the property is repurchased by a third party buyer.

• Leasing does not require the use of working capital;
• Putting an item into use after paying only part of its value;
• No pledge of additional assets required;
• The down payment and the term of the contract are contractual.

• The down payment ranges from 10% of the value of the property to be acquired;
• The minimum amount to be financed is EUR 15,000;
• The object must be insured only with an insurance company acceptable to Urbo Bankas;
• Cars and agricultural machinery must be not older than 15 years at the end of the leasing contract, and freight and special vehicles must be not older than 18 years.

When leasing equipment or vehicles, it is possible to take advantage of guarantees from Investicijų ir verslo garantijos,UAB (INVEGA).

If you are not satisfied with the terms of your existing loan at another financial institution, take advantage of the refinancing option at our bank:

• Get more favourable terms and save your company money;
• Reschedule the repayment of your loan to fit your company’s current cash flow;
• Extend the repayment term or postpone the payments;
• When borrowing, maximise the value of the collateral by obtaining a larger loan amount;
• Remove any restrictions or additional requirements imposed by your current creditor;
• Consolidate several different loans into one, making it easier for you to manage your existing loan agreements.

A loan for investments is used to finance long-term investment projects or business development:

• Purchase of personal and real property;
• Financing of construction works;
• Technology upgrade;
• Financing of other business development projects.

• Repayment of the loans for investment to the bank is made in equal or varying instalments according to a schedule agreed between the customer and the bank, taking into account seasonality and other sources of repayment (e.g. grants received).
• A deferral of loan repayment may be set to your satisfaction until the date of implementation of the investment project.
• Loan repayment may be secured against real property or other property, or by providing guarantees of Investicijų ir verslo garantijos UAB (INVEGA) (the real or personal property to be pledged must be appraised by independent property valuers).

If you are not satisfied with the terms of your existing loan at another financial institution, take advantage of the refinancing option at our bank:

• Get more favourable terms and save your company money;
• Reschedule the repayment of your loan to fit your company’s current cash flow;
• Extend the repayment term or postpone the payments;
• When borrowing, maximise the value of the collateral by obtaining a larger loan amount;
• Remove any restrictions or additional requirements imposed by your current creditor;
• Consolidate several different loans into one, making it easier for you to manage your existing loan agreements;

The valuation of the collateral is carried out by independent partners of Urbo Bankas.

A line of credit is a type of short-term loan that provides customer with a right to access the line of credit as needed:

• i.e. to repay to the bank all or part of the amount of the line of credit used and to draw again all or part of the amount of the line of credit, up to the maximum limit of the line of credit set in the credit agreement.
• The line of credit is used to finance working capital shortages, as well as to provide guarantees and issue documentary letters of credit.

The line of credit is available for up to 3 years.

• The line of credit may be repaid at the end of the term or an individual reduction schedule may be set for each customer.
• Credit repayment may be secured against real property or other property, or by providing guarantees of Investicijų ir verslo garantijos UAB (INVEGA) (the real or personal property to be pledged must be appraised by independent property valuers.

If you are not satisfied with the terms of your existing loan at another financial institution, take advantage of the refinancing option at our bank:

• Get more favourable terms and save your company money;
• Reschedule the repayment of your loan to fit your company’s current cash flow;
• Extend the repayment term or postpone the payments;
• When borrowing, maximise the value of the collateral by obtaining a larger loan amount;
• Remove any restrictions or additional requirements imposed by your current creditor;
• Consolidate several different loans into one, making it easier for you to manage your existing loan agreements.

The valuation of the collateral is carried out by independent partners of Urbo Bankas.

An overdraft is is a form of crediting in which an agreement between a bank and a customer gives the customer the right to have a negative balance on a bank account under the conditions specified in the agreement.

Overdraft is intended for the business customers of the bank who have been in business for at least 2 years and have regular payments through their bank accounts.

• The term of the overdraft is 1 year;
• The negative overdraft account balance must be settled within 30 calendar days from the date on which the account balance became negative (up to 60 days in individual cases). Once the negative account balance has been cleared, the credit funds can be used again from the next working day of the bank.

Working capital loan means the one-time replenishment of the company’s working capital or implementation of expansion plans, aiming to help the company react quickly to changes in the market, to competitors’ actions, or to balance its temporary cash flow.

The loan is intended for investment and economic development:

• Purchase or construction (reconstruction) of real property;
• Equipment;
• Production lines;
• Upgrading agricultural machinery or technology;
• Financing of agricultural business development projects.

• Repayment of the loan to the bank is made in equal or varying instalments according to a repayment schedule agreed between the customer and the bank, depending on your cash flow, seasonality of operations, etc.
• Loan repayment may be secured against real property or other property, or by providing guarantees of Investicijų ir verslo garantijos UAB (INVEGA) (the real or personal property to be pledged must be appraised by independent property valuers).

If you are not satisfied with the terms of your existing loan at another financial institution, take advantage of the refinancing option at our bank:

• Get more favourable terms and save your company money;
• Reschedule the repayment of your loan to fit your company’s current cash flow;
• Extend the repayment term or postpone the payments;
• When borrowing, maximise the value of the collateral by obtaining a larger loan amount;
• Remove any restrictions or additional requirements imposed by your current creditor;
• Consolidate several different loans into one, making it easier for you to manage your existing loan agreements.

The valuation of the collateral is carried out by independent partners of Urbo Bankas.

OCF3 is an incentive financial instrument by INVEGA to promote business growth and investment by facilitating access to finance for businesses.

OCF3 is open to businesses of all sizes and entrepreneurs.

Maximum loan amount up to EUR 1,000,000.

Types and terms of funding:

• Loans for investments for up to 120 months;
• Leasing/ inverse leasing for up to 84 months;
• Line of credit and working capital loan for up to 36 months.

Portfolio guarantees for loans 3 is an instrument aimed at facilitating access to funding for small and medium size enterprises when being unable to provide a collateral that is attractive or sufficient to a financial institution. The guarantee applies to loans that the bank includes in its loan portfolio.

The Portfolio Guarantee 3 is available to small and medium size enterprises operating in the Republic of Lithuania.

The maximum loan amount is up to EUR 2,812,500, but:

• For SMEs engaged in primary production of agricultural products – up to EUR 234,375;
• For SMEs engaged in primary production of fisheries and aquaculture products – up to EUR 375,000.

Guaranteed loans are issued for investment and financing of the working capital.

Types and terms of financing:

• Investment loan for up to 120 months;
• Leasing/leaseback for up to 84 months;
• Line of credit and working capital loan for up to 36 months.

A SME may receive multiple loans, provided that the total amount does not exceed the de minimis aid limit granted to a single enterprise.

Individual guarantees for loans offer solutions to insufficient conditions and facilitate the access to the funding sources.

Individual guarantee for loans is available to business start-ups, small and medium-sized enterprises and large companies.

Individual guarantees are available for loans intended for:

• The purchase, construction, repair or reconstruction of fixed assets;
• Technology transfer through the acquisition of patents, licences or other non-patentable know-how;
• Working capital, in the form of a short-term loan or credit line;
• Refinancing investments previously funded with company resources.

Intensity and amounts of individual guarantees:

• For small and medium-sized enterprises – EUR 5 million.
• For large enterprises – EUR 2.25 million.
• Leasing – EUR 2.25 million (EUR 1.125 million for a lessee who has been in business for less than 3 years as of the application date for a leasing guarantee).
• If multiple individual guarantees are received, the total sum of the guarantee balances must not exceed EUR 10,000,000.
• The individual guarantee ensures repayment of up to 80% of the loan.

Individual guarantees for farmers address the issue of insufficient or unattractive collateral, facilitating access to finance on more favourable terms.

The individual guarantee for farmers is available to operators involved in agriculture, forestry, food production, rural development, and fisheries.

The individual guarantee for farmers ensures repayment of up to 80% of the loan.

Individual guarantees for farmers are available for:

• Loans to finance investment projects;
• Loans or credit lines to replenish working capital or acquire biological assets;
• Leasing for the purchase of production equipment, agricultural and forestry machinery.

Factoring is a contractual relationship in which a bank transfers or undertakes to transfer money to a customer/seller in exchange for the customer’s monetary claim on a third party (the buyer) in connection with the sale of goods, the performance of works or the provision of services, and the customer/seller assigns or undertakes to assign to the bank the bank’s monetary claim on the buyer (conditional assignment of the claim), and to pay the remuneration set out in the contract.

• Fast receipt of funds by granting deferred payment terms to domestic and foreign buyers of company products.
• When working capital is needed.
• To be competitive in the market: the buyer is allowed to extend the grace period and the money is available immediately.
• Where a simplified administration process for the collection of funds from customers is relevant when an invoice is due for payment.

• The term of the factoring agreement is not more than 12 months (may be extended by agreement between the parties);
• The factoring advance is on average 80-90% of the VAT invoice amount;
• The maximum payment term is up to 90 days (longer by agreement between the parties).

A guarantee is an undertaking by a bank to pay a certain amount of money to the beneficiary of the guarantee in the event that the customer of the bank for whom the bank has given the guarantee fails to perform, or performs improperly, its obligations to the beneficiary of the guarantee.

Tender guarantee

A tender guarantee protects the entity that launched the tender (the beneficiary of the guarantee) against the risk of non-performance by the tenderer (customer).

A tender guarantee grants a monetary compensation to the beneficiary of the guarantee in the event that the tenderer withdraws its tender before the deadline or, after winning, the tenderer refuses to sign the contract, or fails to provide a performance guarantee, if so provided in the tender guarantee.

Contract performance guarantee

A contract performance guarantee reinforces obligations of the seller/contractor (customer) to a third party (the beneficiary of the guarantee) under the contract. This guarantee protects the interests of the buyer/customer (the beneficiary of the guarantee) and ensures that the seller/contractor (the customer) delivers the goods or performs the services on the terms and conditions set out in the contract.

The performance guarantee grants a monetary compensation to the buyer/customer if the (seller/contractor (customer)) fails to fulfil its obligations under the contract.

Advance payment guarantee

The advance payment guarantee ensures that the money paid in advance is refunded to the beneficiary of the guarantee in the event that the customer fails to deliver the goods or fulfil other contractual obligations.

Payment guarantee

A payment guarantee ensures that the beneficiary of the guarantee receives payment for the goods, works or services rendered. In addition to the claim, the beneficiary of the guarantee usually has to provide additional documentation (e.g. commercial invoice, bill of lading) proving that the beneficiary of the guarantee has fulfilled its contractual obligations and that the customer has not paid on time.

Beneficiary of the guarantee has an obligation to pay a certain amount of money in the event that the applicant fails to meet its obligations. The guarantee is irrevocable (unless otherwise specified in the text of the guarantee) and the applicant can not revoke or modify the terms of the guarantee without the consent of the beneficiary of the guarantee. The guarantee granted can serve as an instrument to enforce long-term contractual obligations.

The real or personal property proposed to be pledged must be appraised by independent property valuers. In this case, a line of credit is granted to the customer to provide guarantees

A documentary collection is a payment form in which the bank, acting on the instructions of the seller (exporter), transmits commercial and/or financial documents to the bank of the buyer (importer), specifying the terms and conditions under which the documents are to be delivered to the buyer (importer).

The conditions for documentary collection are the following:

• Documents against payment – D/P or cash against documents – CAD;
• Documents against acceptance – D/A;
• Other terms and conditions.

In the process of documentary collection, the bank of the buyer (importer) is not obliged to pay, but controls the process of paying for the documents and provides intermediation services.

• The documentary collection can be used when the buyer (importer) is unwilling to pay in advance and the seller (exporter) is not willing to be paid for the goods after they have been received by the buyer (importer);
• The documentary collection can be used when there is trust between the seller (exporter) and the buyer (importer);
• The documentary collection can be used when the political and legal system in the country of the buyer (importer) is stable;
• The documentary collection can be used when the country of the buyer (importer) allows unrestricted exchange of currency and import of goods.

A letter of credit is an irrevocable commitment by the bank of the buyer (importer) to pay the amount of the letter of credit to the seller (exporter), subject to the seller’s presentation of documentation that satisfies the terms and conditions of the letter of credit.

The Uniform Customs and Practice for Documentary Credits (UCP 600, 2007) govern the proceedings relating to letters of credit.

• The bank only pays to the seller (exporter) when the seller provides documentation that meets the terms and conditions of the letter of credit.
• The buyer (importer) can control the deadlines for dispatch of goods (provision of services).
• In the event that a letter of credit is issued with a deferred payment clause, the buyer (importer) has the option to make payment after the sale of the goods (the seller (exporter) credits the buyer (importer).

• The seller (exporter) has an irrevocable obligation from the bank of the buyer (importer) to pay for the goods shipped (services provided).
• The seller (exporter) can calculate/set the exact date of payment.
• In the case of a long-distance transport of goods, payment may be received before the goods reach the buyer (importer) (the buyer (importer) credits the seller (exporter)).
• The seller (exporter) may use a letter of credit as an additional instrument to raise short-term financial resources.

• The bank and the seller (exporter) shall enter into an Agreement of Letter of Credit Document Prepayment, which sets out the general terms and conditions of deferred letters of credit.
• The letter of credit must be endorsed by Urbo Bank UAB (at the request of the issuing bank (the bank of the buyer (importer)) or the customer (the seller (exporter)), i.e. the risk of the issuing bank (the bank of the buyer (importer)) must be acceptable to Urbo Bank UAB.
• Documents submitted under a letter of credit must comply with the terms of the letter of credit or any inconsistencies therein must be accepted by the buyer/importer.
• The bank pays up to 100% of the value of the documents, minus discounting.
• The discounting of documents can be combined with a credit to the customer (seller (exporter)) by means of a bill of exchange.

There is no minimum and maximum amount of funding, it depends on the following conditions:

• The size of the investment project;
• The customer’s own contribution to the project;
• The financial capacity to repay the loan, projected cash flows;
• The collateral to be provided.

The loan for investments is available for up to 7 years. In exceptional cases, large-scale investment projects can be financed for up to 15 years.

• Repayment of the loans for investment to the bank is made in equal or varying instalments according to a schedule agreed between the customer and the bank, taking into account seasonality and other sources of repayment (e.g. benefits or grants received).
• A deferral of loan repayment may be set to your satisfaction until the date of implementation of the investment project;
• Loan repayment may be secured against real property or other property, or by providing guarantees of Investicijų ir verslo garantijos UAB (INVEGA) (the real or personal property to be pledged must be appraised by independent property valuers).

The valuation of the collateral is carried out by independent partners of Urbo Bankas.

The loan is intended for purchasing agricultural land with a view to expanding the area under cultivation, i.e. for farm development.

• The amount is up to 90% of the value/price of the agricultural land purchased (whichever is lower), where the area of land to be purchased is 10 hectares or more.
• The amount is up to 80% of the value/price of the agricultural land purchased (whichever is lower), where the area of land to be purchased is up to 10 hectares.
• In the case of an additional security, up to 100% of the value/price of the agricultural land to be purchased (whichever is the lower) may be financed*.

* The pledged assets are not required to be appraised by property valuers, in cases specified by the Bank.

Repayment is based on the cash flow of the customer, however, at least twice a year.

The valuation of the collateral is carried out by independent partners of Urbo Bankas.

Repayment is based on the cash flow of the customer, however, at least twice a year.

The credit is intended for short-term working capital financing, where the repayment period and the amount of repayment are linked to the National Paying Agency’s expected payments for declared areas of crops.

• Repayment is due at the end of the term, but no later than the receipt of the payment by the National Paying Agency;
• The line of credit is repaid with a minimum of 1 repayment per year.

Financial lease

The lessee pays the bank the full purchase price of the property, including interest and VAT, during the leasing period, and becomes the owner of the property at the end of the leasing period.

Inverse leasing

The lessee sells his property to the Bank and on the basis of leasing contract buys it by installments, i.e. leasing property seller and lessee is the same person.

Leasing with residual value

The lessee pays part of the price of the property as specified in the leasing contract during the leasing period, and the remaining part of the property price is left to be paid with the final instalment, which is paid by the lessee. The remaining part of the lease is paid out over an agreed period of time, or the property is repurchased by a third party buyer.

• Leasing does not require the use of working capital;
• Putting an item into use after paying only part of its value;
• No pledge of additional assets required;

• The down payment ranges from 10% of the value of the property to be acquired;
• The minimum amount to be financed is EUR 15,000;
• The object must be insured only with an insurance company acceptable to Urbo bankas;
• Cars and agricultural machinery must be not older than 15 years at the end of the leasing contract, and freight and special vehicles must be not older than 10 years.

When leasing equipment or vehicles, it is possible to take advantage of guarantees from Investicijų ir verslo garantijos, UAB (INVEGA). The object must be insured only with an insurance company acceptable to Urbo Bank.

A line of credit is a type of short-term loan that provides customer with a right to access the line of credit as needed:

• I.e. to repay to the bank all or part of the amount of the line of credit used and to draw again all or part of the amount of the line of credit, up to the maximum limit of the line of credit set in the credit agreement.
• The line of credit is used to finance working capital shortages, as well as to provide guarantees and issue documentary letters of credit.

The line of credit is available for up to 3 years.

• The line of credit may be repaid at the end of the term or an individual reduction schedule may be set for each customer;
• Loan repayment may be secured against real property or other property, or by providing guarantees of Investicijų ir verslo garantijos UAB (INVEGA) (the real or personal property to be pledged must be appraised by independent property valuers).