VTB Factoring has implemented a factoring solution to provide 1.3 billion RUB to finance the suppliers and contractors of Power Machines, with an additional deferral for up to 365 days granted to the borrower, and an integrated adjustment of the financing processes to meet the accounting requirements of the company.
"Given the large volume, complexity, and long-term nature of ongoing projects, Power Machines needed unsecured financing to pay its creditors for work and equipment in the time defined in the contracts. We proposed an effective solution to the company, providing an additional deferral of 365 days at an adequate market rate. Due to this solution, the whole chain of Power Machines subcontractors and suppliers will receive money on time," says Corneliu Robu, Head of Customer Relations at VTB Factoring.
"VTB Group is a long-term partner of Power Machines." Now the solution developed by VTB Factoring, whose market offer, experience in implementing large-scale transactions, flexibility, and ability to tailor their processes to meet the company's requirements we highly appreciate, has been added to our joint projects portfolio," commented Vadim Chechnev, Director for Economics and Finance at Power Machines.
The program to finance suppliers of Power Machines is an example of implementing non-standard factoring solutions for large and medium-sized businesses, developed by VTB Factoring experts. It helps to compensate for the common practice of settlements with suppliers, which is unfavorable for buyers, to correlate terms and amounts of financing with payments to suppliers, to release working capital and to allocate it to other company projects.