VTB Factoring and Venture Engineering Lab, a leader in digitising financial products and services in the public procurement segment, have announced the launch of the GetFinance multifactor SCF platform, aimed at shaping a new mass segment of the commercial finance market and developing innovative online factoring services for the SME segment in Russia.
GetFinance is the first end-to-end multifactor digital platform developed specifically for supply chain finance, with the entire cycle of onboarding, processing and issuing financing, as well as subsequent support and accounting of transactions digitised. The project is the first of its kind in Russia.
The online platform automates the entire supplier onboarding process, making the cycle of processing and financing factoring transactions fully digital. Suppliers can enter into factoring contracts remotely without having to visit the bank’s or the factor’s office; they can also receive early financing for completed stages or fully completed contracts. For customers and buyers, it ensures control, security and stable supply from an unlimited number of approved suppliers, as well as a debt management possibility. GetFinance will help factoring companies to attract new customers and drastically cut their costs. The technology used in GetFinance does not restrict the minimum transaction amount, which makes the platform convenient for business and opens up broad opportunities for obtaining financing, primarily for SMEs.
VTB Factoring will be the backbone factoring company for the platform. At the same time, GetFinance facilitates the creation of a marketplace and participation from other market players.
Сorneliu Robu, Head of Client Relations of VTB Factoring, commented: “In global practice, the support of a new project or service by the market leader at launch gives an important positive signal to potential customers and partners deciding whether to use the platform and participate in the new market project. We expect our involvement in the launch of the GetFinance SCF platform to promote further development of convenient and reliable financial services on the Russian market. With the GetFinance platform, companies will get paid-for completed contracts quickly and in a convenient online format, improving their working capital and reducing the risk of cash flow gaps. It will also help deal with many difficulties in the mutual settlement between all parties in commercial transactions. The GetFinance service will immediately become available to all current and future clients of VTB Factoring, and thereafter, to other users of GetFinance as a new online marketplace for commercial online finance in the Russian Federation.”
Yegor Gazetin, CEO of GetFinance, added: “Every year, new technologies penetrate into the business sphere faster and faster. Modern financial products and solutions are reaching their customers more easily. As a result, it becomes easier for a business to get financial support for its development. At GetFinance, we have actually implemented this functionality. Our platform automates factoring and offers it as a fully remote product, accelerating and simplifying the provision of funding. Having a major market player, VTB Factoring, as a partner, will give the project security and financial stability, as well as a potential customer base. Considering the current market trends, the launch of the new platform is well-timed, especially for SMEs in the public procurement segment, which we estimate at 500,000 participants, more than 4 million concluded contracts and potential commercial online financing at RUB 1 trillion a year. We invite all potential customers and partners to join us in using the GetFinance platform.”
GetFinance provides factoring market participants with modern IT tools enabling 100% digitisation at all stages and ruling out paper workflow – from initial filing, through remote identification and verification, to factoring contract execution, issuing financing and fully repaying any outstanding receivables, as well as generating accompanying documents for government agencies. GetFinance participants have access to various analytical solutions, including a unified database on an unlimited number of contracts and counterparties; integration with electronic public procurement systems; a built-in limits management system; a customisable reconciliation of accounts module; integration with ERP systems; a convenient electronic document management system and a number of other innovative solutions. The legitimacy of all actions is validated through the use of a qualified electronic signature created by a licenced operator of legally valid digital document flow. For more information about GetFinance LLC services, please visit its website at www.getfinance.ru.
VTB Factoring is a fully-owned subsidiary of VTB Bank and has been providing a full range of factoring services since 2009. Having led the Russian factoring market since 2011, the company expanded its portfolio by 60% to RUB 215 billion and the amount of funding it provided to over 1,000 companies to more than RUB 600 billion in 2018; it also reaffirmed its absolute leadership in Russia, boosting its market share to 35%. VTB Factoring is a member of the largest international factoring association, FCI, as well as of the Russian Association of Factoring Companies (AFC).