The economy Ministry has found a way to help small and medium businesses

В Минэкономики нашли способ, как помочь малому и среднему бизнесу

Launched an online platform for factoring, which will give new ways of financing.

In Ukraine launched the online platform “Factoring Hub” to support domestic small and medium entrepreneurs (SMEs). It was created by Ministry of economy with the state enterprise “Prozora”, support reform and Office of SME development, the press service of the Ministry. Officials said it will help the development and improvement of the business environment in the state.

In other words, entrepreneurs-suppliers, working with companies, customers that make deferred payments for goods and services will be able to receive money almost immediately via a factor (an intermediary). In search of the latest and will help create a platform. The businessman receives funds from the factor, and by the provider will pay late. However, for such services on immediate receipt of the money the supplier will need to pay.

“We are considering factoring as an additional powerful tool with which business, especially micro and small businesses, will receive additional funding and more opportunities for development”, – said the Minister of economic development Igor Petrashko. And the aim of the project is to expand the sales market a small business through participating in public procurement.

Among other possible advantages of creating an online platform Ministry referred to the development of alternative financing methods and automated online platforms. Further development and promotion support program of USAID “Competitive economy of Ukraine” (kiu). The platform has already successfully used the first SME – suppliers “Ukrposhta”.

“We are very pleased that the important financial instruments are becoming more available to Ukrainian small and medium enterprises. Factoring has played an important role in ekonomrazvitie many countries, because it allows small companies to compete for projects that previously were unavailable to them”, – said the head of the USAID KEU William Grey.

Note also that on 22 July, the Cabinet set up specialized industrial Agency, whose businesses have been waiting for the past 5 years, since the abolition of the Ministry of industrial policy in 2014. A new Ministry of strategic industries mainly focus on the sectors identified by the state as “strategic” – while this is selected the military-industrial complex.