First Factoring Agreement Signed under the Joint Program of OTP Bank and USAID

OTP Bank and SVD-Distribution have signed the first agreement on the provision of factoring services under the joint program of OTP Bank and the USAID Investment for Business Resilience Activity (formerly USAID Financial Sector Reform Activity) to support financing of Ukrainian businesses. 

The factoring agreement provides for financing in the amount of UAH 20 million for the supply of products by SVD-Distribution LLC to the Ukrainian retail chain of household appliances and electronics.

“Our company was founded in difficult times - in November 2022. We decided not to postpone the implementation of the new project. Given our experience, the project is evolving, creating new jobs (the staff of 16 people), we are gaining momentum and plan to grow in 2024, including due to the OTP Bank- USAID program. The financial support, namely factoring services on special terms, which we receive under the OTP-USAID program, will help us replenish our working capital for the supply of household appliances to the chain of stores and provide additional resources and opportunities for further development. As logistics chains are becoming longer, this is the type of financing instrument that our project needs," said Natalia Teslenko, CEO of SVD-Development LLC.

Olga Volkova, Director of Corporate Sales to Small and Medium Clients of OTP Bank, said that a significant number of corporate clients, especially large companies, when signing agreements with suppliers, ask for a certain delay in payments for the delivered goods, which can reach as much as 90 days and significantly increases the need for working capital for their partners. “Factoring allows the supplier to receive funds for its goods in the form of a disbursement from the Bank