Nowadays one of the main directions of the activity of IA “Solev” is trade financing, particularly, contract financing:
By contract financing we mean financing on security of rights of claim of contracts. Typically, the financing is provided in the form of a revolving credit line.
The key requirement in the contract financing is the availability of contracts with reliable companies - consumers of the goods or services. Such consumers may be: the state represented by ministers, municipal formations and various federal state unitary enterprises, "blue chips", large factories, retailers and so on.
Compared with the conventional financing of working capital contract financing has a number of pleasant features for the Borrower:
As well as factoring, contract financing allows to receive funds without providing additional collateral.At the same time in contract financing (1) a credit line is opened immediately after the conclusion of the contract, not after delivery of the goods or provision of services, (2) funding is provided at substantially lower rates than using factoring.