Fincantieri has strengthened its relationship with its suppliers by signing a reverse factoring agreement, initially for three years, with Bank Paribas member BNL Group and the latter’s factoring specialist Ifitalia, to allow suppliers to the Italian shipbuilding giant to unfreeze credit and to draw on liquidity.
The agreement, covering more than 5,000 companies with combined annual purchasing turnover in excess of Euros 2 bn, allows Ifitalia to take on the credit of those companies supplying products and services to Fincantieri, and to advance payment.
BNL then makes further lines of credit available to the same companies for provision of commercial guarantees, and advances payment on contracts before invoices are issued.
“The agreement concerns both simple provision of products and assembly services, and complex activities such as turnkey provision of plant and furnishings,” BNL Group said in a statement.
“Under the agreement, companies make over to Ifitalia their commercial credit towards Fincantieri, both pro soluto and pro solvendo. Furthermore, for immediate financial requirements connected to fulfilling the ciontract, companies may request an advance payment on the contract from BNL and the issuing of bank guarantees.”
Fincantieri chief executive Giuseppe Bono added: “Fincantieri is continuing its commitment to suppliers and recognises their importance as, 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, also of a financial nature, which can support firms at a difficult moment for the economy.”
