Thursday, December 8 2011 17:41
VTB Bank (Armenia) becomes one of the leaders of factoring services market in Armenia
ArmInfo. VTB Bank (Armenia) has become one of the leaders providing factoring services in the banking market of Armenia, having ensured a factoring portfolio worth 709 mln AMD by October 1 2011.
The press service of VTB Bank (Armenia) told ArmInfo that the Bank launched the program on creation of the factoring product in December 2010, and has been providing factoring services since March 2011, having thereby extended the range of its products meant for legal entities. The Bank offers classical factoring to the customers of large and medium business. The customers give their receivables to the Bank and receive financing instead.
Factoring financing allows the suppliers to increase the sales due to provision of more profitable terms to the customers, for instance, delay of payment. The supplier acquire unsecured financing from the Bank, and the financing grows in proportion to the sales growth. The supplier also receives an opportunity to make use of the Bank's professional services of receivables collection and management. "The demand for factoring is to some extent an indicator of "entrepreneurship matureness" of the customers, and now a growing demand for factoring is being observed, as many companies consider this product to be the most effective tool for management of the receivables, liquidity and insurance of the credit risks. In this context, our Bank, which cooperates with most of the large trade and industrial companies, offers an individual scheme of factoring cooperation to each customer", said Valery Ovsyannikov, Director General, Chairman of Directorate of VTB Bank (Armenia).
According to the source, over the last months of 2011, the number of factoring customers has been actively growing, and so has the factoring turnover. In 2012 VTB Bank (Armenia) is going to consistently expand the list of the financed spheres and to increase the factoring operations, as well as to develop the range of the products by offering new factoring products, including international factoring, which has big prospects in the Armenian market.
According to the Ranking of Commercial Banks of Armenia by the Agency of Rating Marketing Information (ArmInfo), as of 30 Sept 2011 VTB Bank (Armenia) occupied the 3rd position in the banking system of the country by its factoring portfolio. Over Jan-Sept 2011 this portfolio of the Bank grew 12 times, and the Bank's share in the total volume of factoring operations in Armenia made up 18%. As of 1 October 2011, the total portfolio of factoring operations of the banking system amounted to 3.9 bln AMD, having increased by 54.6% since the beginning of 2011.
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