The platform, GetFinance, targets small and medium-sized businesses, enabling them to automatically on-board vendors and digitize factoring processes. B2B suppliers can either sign up for the factoring agreement or enter into an early payment discount program with the bank via their corporate customers, reports said.
Vendors fill out an online application for funding, which is then matched to factors, with their offers being sent back to the supplier. Once they pick the best option, they provide an electronic signature to complete the agreement.
Suppliers then upload their unpaid invoices and await confirmation from their buyers; vendors are send funds to finance the unpaid bills once orders are confirmed and delivered.
VTB is focusing specifically on the public sector with its solution, in which an estimated 500,000 SMBs operate and more than four million contracts are issued. The financial institution said the estimated value of commercial online factoring in the public sector is worth about $1.6 billion.
“GetFinance platform is an independent digital aggregator with a main mission to help small suppliers and large buyers to organize mutual settlements within the framework of the public procurement system,” said VTB Factoring head of client relations Corneliu Robu in an interview with the publication. “The key difference and advance of this system is that it provides fully digital remote on-boarding for suppliers and buyers. This means that hard-copy document flow is completely absent even during the stage when clients join the system and sign the first contract.”
Robu noted that the solution is not built on blockchain technology, unlike other newer digital supply chain finance platforms.
In another statement, VTB Factoring CEO Anton Musatov said the platform accelerates working capital for B2B vendors while they wait for their corporate customers to settle invoices. In addition to supporting cash flow, the tool also aims to address the “many difficulties in the mutual settlement between all parties in commercial transactions,” he said.
The platform is now live for current VTB Factoring users, with VTB collaborating with large conglomerates in Russia to join the portal. The bank said it eventually hopes to build itself out as a broader marketplace to help B2B traders obtain the most favorable trade financing and factoring terms.