Metsä Group’s advance financing service for wood trade

Are you planning to buy an apartment, a tractor or a new forest estate? Metsä Group’s advance financing service for wood trade makes it easier to finance large purchases. Advance financing ensures that you get up to 80 per cent of wood trade income into your bank account within three banking days of the sale, even if the trees remain standing in the forest for another two years. The money can arrive as quickly as the same day. The advance financing service is provided by OP Corporate Bank.

Advance financing for wood trade – quick and easy

You can take advantage of Metsä Group’s advance funding service in connection with new, electronic wood sales. In other words, the advance funding service is only offered for electronic transactions. If you have not yet started using Metsäverkko, you can easily do so by logging in at www.metsaverkko.fi.

Advance financing does not require the forest owner to be a member of Metsäliitto Cooperative. It also does not depend on the customer level – that is, whether the forest owner is a Metsä Group contract customer. Even if you are not an owner-member, you can still access Metsäverkko’s sections on forest plans and wood trade and forest management.

Advance financing means that you sell your wood trade receivables to OP. OP deducts the withholding tax from the advance payment. The service is offered for standing sales, as well as for sales carried out by proxy. In regeneration felling, the maximum amount of advance financing is 80 per cent of the value of the wood trade. In thinning, it is 70 per cent. The minimum sum of advance financing is EUR 4,000 (VAT 0%).

This PDF contains an example calculation of advance financing for wood trade.

Stages of advance financing for wood trade

  1. 1

    Communicate your interest in advance financing

    Indicate your interest in advance financing when you request a quote on wood trade or contact our forest specialist.

  2. 2

    Quote on wood trade in Metsäverkko

    You get a quote on wood trade in Metsäverkko. The quote includes a field for financing. The maximum sum of financing is included in the field by default. You can adjust the sum downward. Finally, approve the quote.

  3. 3

    Confirm the agreement with OP

    Log in to the OP signature service to approve and sign the agreement on the transfer of wood sales receivables.

  4. 4

    Advance payment into your account

    OP purchases the wood sales receivables and deducts from the receivables the transaction fee of EUR 200 (VAT 0%) and the estimated interest, which is the 3-month Euribor rate (always at least 0%) + 1.75%. OP pays the appropriate withholding tax to the tax authorities. The costs from advance financing are deductible in income taxation for forestry.

  5. 5

    Final settlement

    You receive a measurement certificate after harvesting. Based on it, Metsä Group withholds the appropriate amount in tax and pays the final sum for the wood trade to you. Metsä Group reports the wood trade in the annual review. After payment of the final sum, OP returns or charges the difference between the actual interest rate and the interest rate estimated in the agreement.