According to statistics from the commodity and raw materials marketplace "ORG-Market" (Open Oil Market), many organizations that are critically in need of fuel right now cannot afford it due to cash flow gaps. The marketplace explains how this happened and what can be done to help them.

Why customers of the raw materials marketplace need post-payment In the first months after the marketplace launched, it turned out that not all customers were regularly placing orders through the platform. We conducted a survey among them and found that some buyers need a payment deferral for repeat orders, just like when working directly with a trader.

A trader purchases a large batch of fuel, sells it in small batches with a markup, and provides additional services: delivery and financing. Customers are willing to buy at a higher price but with post-payment. The marketplace operates on prepayment, offering favorable prices from the manufacturer. However, many platform users prioritize payment deferral due to cash flow gaps. These are reliable large companies that regularly need bulk fuel shipments, but due to the nature of their field, they cannot make advance payments. Our clients needed credits and installment plans that could be arranged within a day with minimal documentation, so they could immediately place an order using that money. The markup per liter of fuel purchased on credit should be minimal.

Where large companies face cash flow gaps The specifics of the wholesale oil market are such that the buyer regularly needs fuel on short notice, but may not have the full amount to pay for the order. Each industry has its reasons for cash flow gaps when purchasing fuel. For example, among our regular customers are companies involved in road construction for state contracts. Payment for these comes through treasury accounts after the project is completed. Once they receive the funds, companies pay their fuel suppliers and other contractors. But without fuel, they can't complete the project and receive payment. This creates a cash flow gap. A similar situation exists for another category of our customers—transport companies. They receive payment after completing the delivery. However, they need fuel immediately to transport goods and passengers. Another example is private gas stations, which purchase a batch of gasoline and diesel, ranging from 5,000 to 30,000 liters, equivalent to a tanker. However, they sell it in smaller batches, so their revenue comes in over several days. Since the marketplace did not offer financing and installment plans, we were missing out on a large number of customers. So, we decided to address this issue.

B2B loans and installment plans for marketplace customers

Our goal was to give companies with different financial situations the ability to purchase fuel. We looked for offers from banks with favorable terms for B2B marketplace users. The first integration was with Sberbank. We became one of the pilot projects within the "Installments for Business" program. We integrated via API with the bank’s system, and users gained the ability to apply for installment plans through their personal account on the marketplace. It took us 3 months to complete the documentation and technical work.

The credit offer from Sberbank became available to "ORG-Market" users in June 2021. The process looks like this:

When placing an order in the personal account, the client opens the "Buy on Credit via SberBusiness" tab.
They select the financial offer.
They proceed to the SberBusiness personal account and fill out an application for the installment plan.
The application is approved. Thanks to automated scoring, the approval process takes up to 3 minutes.
The client signs the payment document and uses the loaned funds to pay for the order on the marketplace. This offer is available to LLCs and individual entrepreneurs who have been in business for at least 6 months and have a current account at Sberbank. Later, we added credit offers from Alfa-Bank and Tinkoff Bank. For customers who did not pass the scoring with the presented banks, they can apply for credit products from another partner—"Papa Finance," a financial company.
Results of the first year of fintech tools on the marketplace

The first launch of the fintech tool on the marketplace took place in June 2021. In the first year, the revenue from orders made with installment plans accounted for 12% of the marketplace's turnover (over 2.1 billion rubles). During this period, 369 transactions were made, and 87% of companies placed repeat orders. The average check was 800,000 rubles. 26% of the marketplace's revenue is generated using borrowed funds. Every fourth company orders fuel using credit resources. It can be confidently said that the integration of the marketplace with financial tools helped 49 companies from various industries to operate smoothly. These include road builders, private gas stations, mining companies, concrete plants, carriers, elevators, agricultural companies, and more.

More about the advantages for buyers

Installments and credit offers helped our clients increase their working capital for purchasing petroleum products. Recall that with a trader, they bought fuel on credit with a markup, as they were using standard business credit programs from banks. But on the marketplace, there are programs with more favorable terms, specifically designed for B2B platforms. For example, some programs offer a grace period with no interest, with the possibility of early repayment. Therefore, the final price of purchasing fuel is not affected by the presence of credit or installment plans. Immediately after the launch of Sber's installment plan in May 2021, companies could get a loan of up to 3 million rubles. In early March 2022, this amount was reduced to 1 million rubles. However, since August 8th of this year, the loan amount has increased back to 3 million rubles.

Making bulk fuel purchases even more reliable with nominee accounts and letters of credit

We continue to use modern IT solutions to make business more efficient and the marketplace safer and more reliable.

Sergey Tereshkin, CEO of ORG-Market LLC: In the near future, we plan to connect nominee accounts—a type of escrow account from the safe transaction service provided by banks. This allows a legal entity (such as a marketplace) to legally manage (but not own) the client's funds in their interest, acting as a guarantor of the transaction. For example, the buyer places an order for fuel and pays for it. The money is deposited into the marketplace's nominee account. From there, it is distributed among the participants of the transaction: the seller, the carrier, and the marketplace itself. Nominee accounts are used by marketplaces and online platforms that connect sellers and buyers. The marketplace becomes the guarantor of the transaction, and the nominee account ensures the reliability of the payments.

The main advantages of a nominee account are:

It ensures transparency of payments for all participants in the transaction.
It reduces costs, as there is no need to make transfers to current accounts.
It ensures the fulfillment of obligations.
The second tool we plan to implement is a letter of credit. This is another mechanism for protecting against commercial risks. A letter of credit is a bank account where the buyer deposits payment for goods or services. The seller or supplier receives the money only after fulfilling their obligations, such as delivering the ordered fuel on time. The bank acts as a guarantor of the transaction. As a result, the buyer has a guarantee of shipment, and the seller has a guarantee of payment.

For our platform, we are considering two types of letters of credit:

Uncovered: The bank provides a payment deferral for the buyer. The main advantage for the buyer is that the debt under an uncovered letter of credit is not considered a loan. The buyer is also not dependent on the supplier's willingness and ability to provide a payment deferral. For the supplier, the uncovered letter of credit guarantees timely payment (prepayment).
Covered: The bank finances the seller’s receivables. For the buyer, this type of letter of credit guarantees protection from commercial risks. For the supplier, it guarantees timely payment. It also improves the supplier's balance sheet without being considered debt.


We will provide more details about letters of credit and nominee accounts for marketplaces in a separate article.