Yurii Kralov: Factoring is a global trend

MTB BANK has already taken a number of steps in the field of development of factoring services in five years and today its market share is 4%. This is quite a large number, considering the fact that modern factoring services are not sufficiently developed in Ukraine. The field is highly monopolized, 92%  services are provided by a maximum of eight banks, this is not enough.  That is why it is so important to make efforts for the comprehensive development of such a promising financial instrument.

«Today factoring – global trend, this tool works effectively in developed economies, and our country has great potential for its application. It is very important that the process of implementation of this financing instrument is initiated and supported by the National Bank of Ukraine,  by the International Financial Corporation (IFC), EBRD and USAID within the framework of the project "Transformation of the financial sector", - emphasized the Chairman of the Board of PJSC MTB BANK. Yurii Kralov.

Creation of the Factoring Development Committee by the Association of Ukrainian Banks – an important step on the way to the spread of such services for the business community of Ukraine.  New solutions give suppliers   the opportunity to partially replenish their working capital, exactly as much as they currently need. 

« Banks attract funds from depositors and can provide larger financing due to this. We also provide a wider range of services, offer clients complex combined products, for example, factoring  in foreign trade transactions. MTB BANK was one of the first to join SupplierPlus.  This is an online platform that operates with digital documents, uses automatic data exchange and electronic signatures.  Therefore, suppliers receive  access to a source of working capital,  sell invoices on demand, and when needed, receive up to 100% of the invoice amount immediately after the sale. Buyers, in turn, work with longer terms of payment without harming suppliers," Yuriy Kralov summarized.

Potential market volumes are simply huge, as more than 60% of trade transactions in Ukraine are carried out with deferred payment. The development of factoring will make it possible to replace about 3 billion euros in the lack of business liquidity, which in turn will give a powerful impetus to the development of the country's economy as a whole.

The Committee for the Development of Factoring in Ukraine is interested in the fact that the banking community and companies  used this financial   tool as soon as possible to quickly and easily attract additional financing of working capital.