OREANDA-NEWS. August 17, 2010. The Russian Bank for Development improves accessibility of resources under the SME Lending Support Program. To that effect the Bank has developed a new credit product for banks carrying out factoring operations, reported the press-centre of RBD.   

The RBD’s product line was supplemented by a special offer Factoring-Bank that will enable the Bank to extend loans to the partner-banks for the subsequent lending to SMEs (factored clients) under the assignment of a monetary claim (factoring) on contracts for delivery of goods, works and services.

The size of the credit line opened for a bank is calculated taking into account the financial standing of the bank and its needs in financing factoring transaction. The interest rate for the new product Factoring-Bank is set at 9% p.a. and a period of loan will be up to 1 year.

The banks may channel the resources allocated by RBD for financing factoring transactions with SMEs that operate in different industries.

“Factoring is one of the most attractive instruments for receiving financing by SMEs, since the funds can be extended easier than through conventional bank lending. Moreover factoring may facilitate producers’ sales growth on account of more competitive terms for customers”, pointed out O.Teploukhova, Deputy Chairman of the Board of RBD.