Alfa bank to deliver EUR15 million working capital solution to Net Element
Alfa bank will provide Net Element with RUB600 million (EUR15 million) via factoring and a credit line.
Net Element, a global technology and publishing company that operates in mobile commerce and payment processing, has announced that Alfa-Bank, Russia's largest private bank, has extended Net Element's mobile payment processing company, TOT Money, a credit facility of 300 million rubles (approx. US$9.5 million) and plans to extend to TOT Money another 300 million rubles under a planned factoring agreement to support the company's next stage of growth and operations.
While Russian factors continue to grow their receivables portfolios, market experts are wary of higher risks.
Moscow-based Promsvyazbank has tripled its year-on-year profits and increased its total SME net loan portfolio in the first half of 2012.
The Russian Government has approved an action plan that includes development of international factoring in Russia.
Russian-based Nomos Bank has extended its previous limit on factoring operations by RUB 1 billion to Transaero, one of the largest aviation companies in Russia.