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Sunday, December 10, 2023
WorldAsiaFactoring offers new opportunities for Chinese suppliers in the Russian market

Factoring offers new opportunities for Chinese suppliers in the Russian market

This was announced during a panel discussion on “Product Adaptation and Promotion when Entering a New Market: Russia and China”, organized by the Office of the Commissioner for the Protection of entrepreneurs to the President of the Russian Federation and the Russian-Chinese Committee for Friendship, Peace and Development, said Director of Client Affairs of the Department for Work with Corporate Clients of Srednerussky Bank PJSC Sberbank Alexander Bondarev .

He spoke about the range of factoring products provided by the bank. Among them, for example, factoring by agents, which is in fact

operating credit for the buyer of goods (via accounts payable financing). Available to customers in good financial health.

Another type of factoring, that of raw materials, is currently being tested at car dealerships of Chinese brands, Bondarev said. Suitable for suppliers with a liquid goods warehouse / fleet of vehicles. Thanks to this product, the customer will be able to benefit from financing through the transfer of ownership of the goods to SberFactoring, until the delivery of the goods to the final buyer. This method involves collateral insurance, monthly checks by a surveyor, significant paperwork and additional costs.

Non-recourse factoring is intended for car dealerships, special equipment resellers and B2B suppliers (mainly electronics).

In this case, after the shipment of the goods, the supplier sends the factor a register of deliveries in order to collect the product earlier than expected, the concessionaire/buyer confirms the deliveries, the factor charges the goods with a pledge (if the vehicle is sold) and transfers 100% of the payment to the supplier. At time of sale, dealer sends funds to pay off debt, factor removes charge, need to have sales plan and dealer/buyer register, retro sales stats are desirable, some requirements for the supplier if it is a distribution network.

Finally, the Razvitie product offers the option of receiving financing against the assignment of future/current cash receivables, which does not require signing a notice with buyers and does not limit the intended use of funds. The supplier sends the factor a register of future / current deliveries, the factor pays 100%, then the customer sends them back on time according to the contract or earlier (no additional commission). This type of factoring is intended only for customers with an excellent financial situation, the bank representative clarified.

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Russia Desk
Russia Desk
The Eastern Herald’s Russia Desk validates the stories published under this byline. That includes editorials, news stories, letters to the editor, and multimedia features on easternherald.com.

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