Promsvyazbank (PSB) announced on Thursday that it is breaking into the factoring market by financing suppliers to a company in Belarus that is supplying goods to Russia.
The privately owned Russian bank will provide financing of $530,240 to a Civil PIR PAK, a dairy producer and food company that exports its products to Russia. The first installment of the financing was delivered on Tuesday with the financing limit set at $2 million.
"Development of cooperation with Belarusian suppliers within the pre-delivery factoring without recourse [opens] to our customers new opportunities for successful business development and increases the products supplied," Victor Nosov, vice president and managing director of factoring for PSB, said. "This is a unique product for the Russian and Belarusian factoring market."
According to PIR PAK representatives, agreements between the bank and its suppliers provides comfort in being able to defer payments and allow for higher rates for competition.