CREDIT BANK OF MOSCOW and CONTUR.DIADOK reduced by three times the transaction period of LCs products for UMMC Group
Credit Bank of Moscow and UMMC Group have signed the multi-currency Agreements on issuing letters of credit (Agreements).
Within the above mentioned Agreements the companies of UMMC Group can issue LCs using the system of Kontur.Diadok.
Switching to the LCs transactions based on the Kontur.Diadok platform gives UMMC Group an opportunity to negotiate the better terms of payment with the Suppliers including deferred payment to speed up the processing period and to decrease the transaction costs. LCs transactions at the Kontur.Diadok platform do simplify the paperwork at the very same level of reliability.
Also Credit Bank of Moscow offered to the Suppliers of the UMMC Group the option of discounting the LCs. It allows the supplier to get the payments before the term of the deferred payment and without the necessity to set up the credit limits.
“ We have advised the LCs straight to the Suppliers which are non-clients of Credit Bank of Moscow, comments Natalia Bakhova, The Head of Trade finance Department of Credit Bank of Moscow, “Now there is no Supplier’s servicing bank participating in the procedure, shipping documents and supplier’s application for discounting of the LC are now delivered through the electronic system. On average, it cut the operation’s period down to 10 days. Advising and documents’ exchange now take minutes instead of days. Member organizations of the UMMC Group wanted to get a product that will be convenient to work with considering private procurement from various suppliers. We managed to help the client to deal with the problem of transferring a big amount of internal Russian suppliers with frequent shipments to the letters of credit”.
Credit Bank of Moscow pays special attention to the digitalization in the international financing.
“We are actively working on the digitalization of the international financing products, specifies Bakhova, Now we have an import factoring transaction on the stage of implementation where the paperwork will be executed through the solutions of the Kontur-INC. In this direction, we are the pioneer Bank that developed the option that included processing of international factoring’s implementation. In this case, we will accept the documents from the foreign supplier and the Russian buyer through the electronic platform on base of the services Kontur.Diadok and Kontur.Factoring where the documents will be signed using digital signature. Transferring the deal to the electronic document flow provides the opportunity of acceleration the financing timeframes and cutting down the paperwork’s volume. The launch is planned in the first quarter of 2021.”
“The technology of electronic document flow deals with several challenges simultaneously. Firstly, it accelerates business-processes by the instant delivery of the documents. Secondly, in factoring the documents of Kontur.Diadok serve as the confirmation of the deal. Electronic documents are legally valid which does not require duplication on paper. Parties of the transaction provide them remotely which is convenient both for the inner and international exchange with foreign counterparties. Implementing the electronic format of interaction Credit Bank of Moscow spares its clients’ time as well as demonstrates an agile method of trade finance products’ formation”, comments Anna Zvyagintseva, The head of Department of developing key clients in Kontur.