VTB Factoring and Ingosstrakh ONDD Credit Insurance have signed a cooperation agreement on insuring trade credit. Under the agreement, the insurer protects its partner against risks related to lengthy payment delays or major buyers’ bankruptcy, as part of factoring deals without any right of recourse on specific inquiries by VTB Factoring clients.
Ingosstrakh ONDD Credit Insurance General Director Alexei Bezdenezhnykh and VTB Factoring General Director Anton Musatov signed the agreement for one year with the option for its automatic extension.
“This is an important stage for us and a major event in developing insurance for factoring operations. We are glad to be moving forward with VTB Factoring, the leader of the Russian factoring market in the Association of Factoring Companies (AFC) rating. This project no doubt has vast potential. The use of insurance in the granting of factoring funding clearly increases market appeal and demand among suppliers that require deferred payment and trade credit insurance,” Mr Bezdenezhnykh said.
“Credit insurance will be an additional instrument for VTB Factoring in minimising risk, enabling us to broaden the services we offer clients and raise funding limits for them. I would like to emphasise that we will offer this additional service only at our clients’ request. I’m sure that our cooperation with Ingosstrakh ONDD Credit Insurance will be long-term and will serve to promote our companies’ and clients’ businesses,” Mr Musatov said.