OREANDA-NEWS. On July 17, 2008 Alfa-Bank has launched a factoring financing program, a new working-capital management product for the bank’s corporate clients, reported the press-centre of Alfa-Bank.

Factoring is an effective instrument for large clients as well as small- and medium-sized businesses. It will increase the number of buyers, expand the area of deliveries, boost sales, derive maximum profit from seasonal demand highs and liquidate cash gaps.

Alfa-Bank offers factoring financing against the assignment of a monetary claim. The cost of factoring at Alfa-Bank is comparable with the cost of short-term lending. Our product is distinguished by the uncomplicated and transparent structure of the commissions. During the promotional campaign, which ends on August 1, the client will only be charged one commission (for the provision of financing). No commission will be charged for the administrative management of receivables.

In addition, Alfa-Bank will not make a mandatory demand that the client transfer all of its debtors to factoring. The client may start with one debtor in order to asses the advantages of the service. All subsequent debtors will be added under a general agreement signed with the client, which significantly simplifies the formal aspect of the transaction.

The bank will provide the client with a special program module, allowing the client to quickly obtain clear and concise analytical data on the state of the buyers’ debts. Factoring financing is available to clients in all the regions covered by the bank.

“Factoring is a banking product that is becoming more and more in demand,” explains Evgeny Kaluzhin, head of Alfa-Bank’s Factoring Department. “We are already considering applications from Tatarstan, as well as the Saratov, Yaroslavl, Kurgan and Voronezh regions, and we are planning to considerably expand our factoring business. Currently, limits of over R500 mln have been set for new clients. By the end of the year, Alfa-Bank’s factoring financing portfolio should reach US150 mln.”

Agama Trade was Alfa Bank’s first client to receive factoring financing. Its debtors include X5 Retail group’s enterprises (OOO Perekrestok, ZAO TH Perekrestok-2000 and OOO Sladkaya Zhizn  N. N.). The client has already transferred almost 1,000 deliveries to the bank on a factoring basis.