VTB Factoring and Ulyanovsk Automobile Plant (UAZ) have signed a number of
The deal was implemented using new solutions in VTB Factoring’s product line.
ABL is a type of
ABL differs substantially from classical factoring in that funding is provided against a significantly broader range of assets. It is an innovative product not only for the Russian factoring market, but also in many European countries. In most European countries, the ABL financing market has existed for about 10 years.
VTB Group has a long strategic partnership with Sollers Group, providing a wide range of products and services including lending,
The new cooperation scheme between VTB Factoring and UAZ involves factor acquisition of vehicles and transferring them for sale under an agency agreement.
The mechanism will provide favourable financing terms to all UAZ dealerships, which guarantees that all UAZ models will be available to clients on the best financial terms.
Nikolai Sobolev, deputy CEO and CFO and a member of the Sollers Board of Directors, said: «Given the challenging situation on the Russian automotive market, we faced the task of providing the most competitive offer to UAZ buyers. One of the issues was financing the dealer network: in 2015, the cost of the SME lending segment, which includes our dealers, increased sharply. Dealers were unable to obtain loans even at high interest rates. We asked VTB to provide
Sollers is a leading player on the Russian automotive market.
«The deal to provide VTB Factoring financing to deliver UAZ vehicles to dealerships will improve not only the automaker’s efficiency, but the entire Russian auto industry," First Deputy President and Chairman of VTB Bank Management Board Yuri Soloviev said.
Anton Musatov, CEO of VTB Factoring Ltd., said: «Sollers is VTB Factoring’s most progressive client. In 2014, for the first time in the history of the Russian factoring market, we conducted a joint factoring deal involving fully digital factoring based on electronic invoices. In 2015, we have brought
SOLLERS is Russia’s leading automotive company working in partnership with international automobile industry leaders, such as Ford, SsangYong, Mazda and Isuzu. Its annual turnover is 47.9 billion roubles. SOLLERS owns production facilities that manufacture Russian UAZ
VTB Factoring — a subsidiary of VTB Bank — has provided factoring services since 2009. The company operates through offices in 18 major Russian cities. VTB Factoring is a member of the major international IFGroup factoring association and the Association of Factoring Companies.