The purpose of the deal was that the importer bought ready goods from one of Italy’s largest manufacturers of children’s clothing on a commercial deferred payment basis, while SimpleFinance role was to act as a financial agent.
Factoring – as alternative financing tool for international contracts – let the client have comfortable payment terms and allowed to minimise foreign exchange risks by fixing the delivery debt, initially recorded in Euros, in Rubles.
International factoring is a set of financial services designed to maintain foreign economic activities. It allows the companies to streamline calculations and gain profitable contractual terms.
The company’s portfolio encompasses all types of factoring: recourse and non recourse, domestic and cross border, as well as a number of accounts payable services.
“The market shows an increased interest in international factoring by SME segment. We offer our clients an effective tool to develop international trading activities and increase business competitiveness, which is crucially important in conditions of limited opportunities to attract bank financing.
SimpleFinance plans to continue further development of factoring products and improve transaction technologies to improve the quality of services and create financial solutions that meet the needs of our customers, ”commented Ivan Parfyonov, Director of Factoring Services at SimpleFinance.