SCF - a growth tool for emerging markets

Corneliu Robu, head of client relations at VTB Factoring, board member for GetFinance supply chain finance (SCF) marketplace and head of the SCF Committee of Russian Association of Factoring explains how SCF allows factoring companies to enter large corporate’s segment and how it shapes the factoring industry in a new way.

The growing importance of SCF business is a clear trend in the emerging markets, Russia being one of them. Over the last years, buyer centric payables finance instruments have been actively promoted by the leading factoring service providers.

Statistics given by individual players demonstrate that SCF can account for up to 30% of funds out and this can explain as well why the Russian factoring market is growing by 30-50% every quarter over the last two years.

In less than six months this year, three SCF platforms have been launched, one of them being GetFinance - a multifactor marketplace, first of its kind in the CIS region. In an attempt to study how the SCF market is developing in Russia compared to other countries, VTB Factoring, the largest factoring and commercial finance provider in the CIS region, conducted a survey in cooperation with a leading business magazine and the local Association of Corporate Treasurers.

Over 400 companies were interviewed and the results revealed a tremendous potential for further growth of the market, as 96% of the respondents declared that they were not aware of the availability of any type of SCF/payables finance programs in the market.

Corneliu will join more than 35 senior supply chain finance executive speakers at BCR’s Supply Chain Finance Summit, which will take place on 30 - 31 January, 2020 in Amsterdam, and he is one of the speakers to the panel dedicated to ‘Emerging SCF market opportunities – Africa, CEE, Russia and central Asia’. Engage in debate, network with your peers and help define the future of working capital in your region!