FUIB provides financing for the suppliers of state-owned enterprises of strategic importance

The First Ukrainian International Bank (FUIB) will provide financing for the suppliers of new state-owned enterprises that have joined the Factoring Hub online platform since the beginning of the year.

From now on, suppliers of goods and services that cooperate with such large state-owned companies of strategic importance as Boryspil International Airport, as well as a number of companies that are part of the "Ukroboronprom" concern – State Enterprise "Progress" Design Bureau named after O. H. Ivchenko, Kharkiv Design Bureau for Mechanical Engineering named after O. O. Morozov, and State Enterprise "Zorya-Mashproekt" Gas Turbine Research and Production Complex," – will be able to participate in public procurement and receive financial support from FUIB on the terms of deferred payment through the Factoring Hub.

With the help of factoring, not only can SMEs effectively avoid the lack of working capital at a fairly low cost (not higher than the cost of lending), but also enlist the bank's support in relations with the state customer within 3 days (without financial analysis and with a minimum package of documents) and faster receive payments under contracts which are transferred for factoring.

"The main value for companies that cooperate with large customers on the terms of deferred payment is the non-recourse factoring offered by FUIB. Its uniqueness lies in the fact that the obligation to return the money to the bank rests solely with the buyer, that is, the customer, and the supplier is in no way liable for the completeness and timeliness of payments by the debtor," said Liudmyla Beldynska, head of FUIB's factoring department.

FUIB was the first bank to join the Factoring Hub platform in July 2020, and the all-Ukrainian postal operator Ukrposhta became the first state-owned debtor company. Since the start of the platform's work, the bank has approved funding requests totaling over UAH 60 million.

According to Liudmyla Beldynska, the demand among companies for participation in public procurement is growing, so the bank is currently actively working with partners to expand the list of debtors in the project.