VTB Factoring has finalised the financing stage of a factoring agreement to provide RUB 1.3 billion worth of funding to suppliers and contractors of Power Machines. The agreement provides for an extra 365-day deferral of repayment for the debtor and a comprehensive set-up of financing processes according to the company’s accounting requirements.
“Considering the size of the financing solution, complexity and long-term nature of the projects, Power Machines required collateral-free financial backing to pay its creditors for the works and equipment within agreed terms. We offered an efficient solution by providing an additional deferral of 365 days at a reasonable market rate. Relying on this financing solution, the entire chain of Power Machines’ subcontractors and suppliers will receive their payments on time,” said Corneliu Robu, Head of Client Relations at VTB Factoring.
“VTB Group has been a partner of Power Machines for many years and our portfolio of joint projects now includes a VTB Factoring solution. We highly appreciate VTB Factoring’s market solutions and experience in financing large deals, as well as their team’s flexibility and ability to adjust the processes to our requirements,” said Vadim Chechnev, Director for Economics and Finance at Power Machines.
The Power Machines’ supplier funding programme is an example of innovative factoring solutions for large and medium-sized businesses implemented by VTB Factoring. The programme allows customers to compensate for disadvantageous settlement practice, correlate the funding with payments to suppliers, and make working capital available for the company’s other projects.
Power Machines is a global power plant construction company, a world leader in the industry for installed equipment. The company’s products include modern solutions for the thermal, nuclear, hydraulic and electric power industry, industrial production and transportation.VTB Factoring is a subsidiary of VTB Bank providing the entire range of factoring services since 2009. It is a recognised leader in the Russian market with a share of around 30% for major business indicators. In 2016, the company’s factoring turnover exceeded RUB 437 billion, and its factoring portfolio reached over RUB 90 billion, with over 720,000 deliveries funded. Read more about VTB Factoring at www.vtbf.ru.