OTP Bank uses the newest technologies to develop factoring services - L. Zaika
OTP Bank uses the newest technologies to develop factoring financing services, which allows to significantly speed up work processes and provide financing to clients faster. Lina Zaika, Head of OTP Bank Factoring Financing Department, told about this during a round table on the topic: "How factoring can support business development during the war", organized by the "Financial Club".
According to her, the Bank has switched to a full electronic document flow: from signing relevant contracts and drafting documents regarding the assignment of the right for monetary claim to the registers and credit files storage. "We actively involve new technologies, including robots, artificial intelligence and all possible means that help, for example, in checking supporting documents for the financing applications, speed up work processes. We are developing so that clients have the opportunity to exchange online not only electronic documents, but also to receive all the necessary information from the Bank," said L. Zaika.
Factoring financing for small and medium-sized enterprises (SMEs) is an affordable and convenient product. Factoring allows you to receive working capital for the business immediately after the delivery of the goods, without waiting for the end of the deferred payment under the contract with the buyer. "This type of financing is especially relevant for small companies with a limited amount of their own assets due to the absence of the need to provide security, as well as reducing the interest burden for them," she added.
This bank financing instrument received support from the state in the form of "Affordable factoring" program, which operates within the framework of state business support "Affordable loans 5-7-9%" to provide SMEs with working capital.
OTP Bank was one of the first to participate in the implementation of the "Affordable Factoring" program. "The bank is already considering several limits and plans to sign the first factoring agreements within the framework of the "5-7-9" program in the near future," said the Head of the Factoring Financing Department.
About the state program "Affordable factoring" (data from the Ministry of Finance). Financial support of business entities under factoring contracts provides for interest rate compensation at the level of up to 13% per annum. The authorized factor will provide factoring to the business entity in the amount of up to 95% of the receivables, but the amount of financing cannot exceed UAH 150 million, including funds received under the programs "Affordable loans 5-7-9%" and "Affordable financial leasing 5-7-9%". The program can be joined by SMEs - residents of Ukraine, who supply goods manufactured by a Ukrainian producer, on the terms of deferred payment, whose ultimate beneficial owners (controllers) are private individuals - residents of Ukraine and agricultural producers.
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Public Joint Stock Company OTP Bank is a subsidiary of OTP Bank, which is the largest independent Central-Eastern-European banking group. JSC OTP Bank is one of the largest domestic banks, a recognized leader in the financial sector of Ukraine. The Bank provides a full range of financial services to corporate and private customers, as well as to small and medium enterprises. The bank entered the Ukrainian market in 1998, and since then it enjoys a staunch reputation of socially responsible, reliable and stable institution providing its consumers with services of European quality standard.
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