Leman Ukraine, the Kiev-based metal trader, has secured a factoring deal worth UAH 8.5m.
Ukrsotsbank, the Ukrainian bank, will provide working capital finance priced at 9 per cent annual interest.
“The agreement makes it possible for the metal trader to provide its clients with a grace period in payments for metal products of up to 45 days,” a statement from Leman Ukraine said.
Leman-Ukraine director Dmytro Nikolayenko believes the factoring agreement offers a new level of funding flexibility for both the metal trader and its suppliers. “We are trying to employ European experience in working with clients, and the new program allowing a grace period is only the first phase. In future, we will increase the period for financing to 90 days, which will make it possible for our clients not to withdraw large assets from turnover and more efficiently manage finances,” he said.
Source: BCR
