Italian shipbuilder Fincantieri has signed a reverse factoring agreement with BNL and factoring company Ifitalia.
The deal will enable over 5,000 suppliers working with Fincantieri to unfreeze credit and draw on additional liquidity in proportion to individual supply contracts.
The agreement has an initial duration of three years, with an annual turnover of approximately €2bn (US$2.7bn) for the purchase of materials and labour.
Under the terms of the agreement, BNL , a member of the BNP Paribas banking group, will provide further credit lines for the provision of commercial guarantees and advance payment on contracts, before invoices are issued.
Ifitalia, a company in the BNL group specialising in factoring, will take on the credit of companies which supply products and services to Fincantieri.
Furthermore, for immediate financial requirements connected to fulfilling a contract, companies may request an advance payment n the contract from BNL and the issuing bank of guarantees.
The deal is wide in scope, offering factoring solutions for both the simple provision of products and assembly services and complex activities such as turnkey provision of plant and furnishings.
Giuseppe Bono, CEO of Fincantieri, says: “Fincantieri is continuing its commitment to suppliers and recognises their importance since together we make up the company’s system. This agreement with BNL sets out to further strengthen our relationship with our supply chain by providing new instruments of a financial nature, which can support firms at this difficult moment for the economy.”
Last Updated March 23, 2010
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