Baku, Azerbaijan, Aug. 13
By Azad Hasanli - Trend:
Bank VTB (Azerbaijan) starts rendering factoring services to the local producers, Zaur Rasulov, the member of the board, head of the corporate business department, said at a press conference August 11.
"One of the problems of any business is accounts receivable," he said. "By supplying their products abroad, the companies are faced with delays in payments. Therefore, we are ready to support our customers willing to use such a tool of international financing as factoring. This type of financing is almost undeveloped in the country."
He said that there are some discussions in this direction with the Moscow office of VTB.
"VTB has such a structure as VTB Factoring, its representatives have been already here," he said. "They said that there is a sphere for their activity in the country and the potential for joint work. We expect their visit again."
Rasulov said that several meetings and negotiations with local producers, who are allowed to supply products to Russia, have been already held.
"The relevant certificates are required to export the products to the Russian Federation," he said. "This applies, for example, milk and meat products. Local manufacturers have reached certain agreements with network companies (supermarkets, etc.) in Russia, which will actively sell their products."
In his turn, Yuri Yakovlev, chairman of the board, said that the network companies are the most reliable customers.
"However, it is difficult to work with them because of the high demands, including conducting of settlements," he said. "As a rule, they transfer money for goods in 30-60 and sometimes 90 days. This is disadvantageous to the producers, especially food producers, because they must buy raw materials, ingredients, etc."
Yakovlev said that the advantage of factoring is that the bank pays the full amount to the exporter and after a certain time gets money from the network company.
Edited by CN