Without Bank Loans

A standard challenge that every CFO faces is ensuring sufficient free cash flow for their company. While selecting appropriate financing tools, the financial team at RTL Alliance realized that traditional banking resources—such as credit lines, overdrafts, and factoring—do not adequately meet the company’s needs due to the specifics of the business.

As a freight forwarding company operating under a brokerage model without its own fleet, RTL Alliance has nothing to offer as collateral to banks. Meanwhile, the very nature of intermodal transportation is capital-intensive. It involves consolidating goods from different suppliers—say, at a warehouse in China—then packing them, loading them into a container, and delivering to a port or railway terminal. The final stage is customs clearance, for example in Kolyadichi, and delivery to the client.

This delivery chain involves numerous contractors, and the invoices they issue represent the transportation cost, to which the logistics company adds its own fee for organizing the entire service package.

— This makes up the freight cost,” explains Maksim Dodolev. “The peculiarity is that under Belarusian law, only the freight forwarder’s fee is recognized as revenue. So if a shipment from China to Belarus costs around $5,000 by rail, the logistics company’s revenue is just $300 per container—the freight forwarder’s commission.

Without Factoring

When asked why factoring is not suitable for closing cash flow gaps in logistics, Maksim Dodolev responds:

Factoring is still gaining popularity in our country, and there are two key issues:

• Banks and factoring companies are selective in forming their client base;

• Many debtors are reluctant to participate in factoring arrangements.

However, we are hopeful that factoring will become more widespread in Belarus, and we are preparing to make broader use of this financial instrument.

“This brings us to the first major financing constraint — the volumes we can access are dozens of times smaller than what other businesses can afford,” explains Dodolev, CFO of RTL Alliance. “The second constraint is the requirement for ‘hard’ collateral. Bank lending without collateral is limited to 550,000 BYN, and that’s without reserve deductions.

“For us, this is a predictable and transparent story that remains unchanged until the end of the token circulation period. Its key advantage is a broad base of investors without reliance on a single creditor,” comments Maksim Dodolev.

The Price of Success

The expert presents several arguments to explain why he considers the company’s entry into the crypto platform a success.

The experience enabled RTL Alliance to launch a second issuance of $500,000 at 8.5% annually. The third issuance of $600,000 is also being offered with a 3-year term and an 8.5% annual yield. The token face value is $20, allowing retail investors to participate with small investments — for example, part of a salary or interest income from other financial instruments. It’s easy to calculate the potential return: an investor who buys $5,000 worth of tokens could expect to earn $425 per year, and $850 annually for a $10,000 investment.

Additionally, RTL Alliance offers a buyback option for tokens twice a year. The declared maturity term for the tokens is 3 years.

Leadership and a Compass of Reliability

When entering the corporate debt market, it is essential for an issuing company to demonstrate its credibility to investors. A proven way to do this is by obtaining ratings from independent agencies that provide benchmarks regarding risk levels, business transparency, and the issuer's ability to meet debt obligations in full and on time.

Following the example of leading peer issuers, RTL Alliance received a high AA business reputation rating from Bik Ratings. This was further supported by an A rating from A Service for service reliability. The company’s credit rating is currently under review, with the expectation of being upgraded from its previous BBB+ level to category A.

The company’s expertise also helps it maintain leadership in industry-related projects such as:

• “Logistics Company No. 1” according to the national “Number One” business award — won three times;

• Winner in the “Top Export-Import Deal Organization” category;

• Company representatives have participated as speakers and experts at over 100 international events.

Currently, the logistics provider is taking part in the BAMÉ freight forwarder rankings and aims to retain its position in the top ten.

“We believe that success in industry awards and rankings also reflects our company’s leadership, as its competencies and potential are evaluated by internationally recognized experts. Beyond external assessments, we also measure ourselves through a robust internal risk management system,” shares Maksim Dodolev.

Corporate Standards for Mitigating Credit Risk

To manage credit risk, RTL Alliance adheres to a core policy document — its credit policy — which outlines the conditions under which the company works with clients. This policy defines:

• the amount of payment deferral allowed;

• the term of the deferral;

• the client groups eligible for such terms;

• and who within the company is authorized to make such decisions.

Clear answers to these questions allow RTL Alliance to manage client financing tools at any given time and reduce business risks.

If sales are underperforming, managers may ease credit terms. Conversely, if, for instance, payment discipline is expected to worsen in the second half of 2025, the company tightens its conditions accordingly.

In addition, RTL Alliance reduces risks through numerous internal procedures — most of which are automated. This includes the onboarding process for new clients, coordination of payment terms, deal structure and economics, and ongoing monitoring of signed agreements. Meanwhile, the financial security team handles accounts receivable. As of today, all internal limits on overdue receivables are being met.

“This approach helps us avoid partnering with companies that present solvency risks,” explains Maksim Dodolev. “Russia currently has an extremely high interest rate that makes debt servicing burdensome. Combined with disrupted supply chains, we see an increased risk of payment delays and bankruptcies among both Russian and Belarusian clients.”

Taking this into account, RTL Alliance implemented stricter overdue receivables limits for 2025. A comprehensive risk approach also means the company must maintain a large and diverse client portfolio. Managers do not keep any client whose order share exceeds 10% of the total volume. The same diversification principles apply to working with vendors.

As for risks associated with logistics timelines, there are both foreseeable and unforeseeable factors. That’s why working closely with counterparties, subcontractors, and legal teams to ensure deadlines are met is a critical part of RTL Alliance’s risk strategy.

Recognition as an Advantage

RTL Alliance shares its risk management strategies for the same reason it seeks high ratings — to increase brand recognition and trust in the company.

The token issuance also serves as a reputation-building project. One supporting factor is that the company’s own employees voluntarily purchase these digital bonds. According to CFO Maksim Dodolev, this demonstrates strong staff loyalty, trust in the business, and belief in its profitability.

“We don’t view token purchases as a way to tie employees to the company,” says Dodolev. “If done voluntarily, it’s simply an opportunity for additional income. They’re investing in a business they know and understand.”

For external investors, the digital investment platform provides clear instructions on how to purchase tokens, set up a virtual wallet, and more. In addition, RTL Alliance maintains a policy of "financial transparency" — publishing its financial statements quarterly on the corporate website. These documents are publicly accessible without registration, allowing anyone to independently analyze the issuer's financials and rating indicators.

Working Capital Investments: What’s the Benefit?

Following three token issuances, RTL Alliance successfully raised $1 million. But how are these investor funds being used?

The company’s CFO explains that the capital raised has been added to RTL Alliance’s working capital, helping to boost cargo volumes — and, as a result, the company’s key business indicators.

“The majority of these investments go toward covering the gap between accounts receivable and accounts payable turnover cycles, which can be significant at our operational scale,” explains Maksim Dodolev. “This type of financing allows us to offer clients deferred payment terms or to pre-purchase services at optimal times. This enables us to secure capacity when logistics supply is tight.”

Essentially, investor funds have gone directly into working capital rather than covering cash gaps in investment activities. The company raised funds for a 3-year period, while its cash turnover cycle is 2–4 months. This results in a very comfortable financial outcome for the business and creates low risk for investors.

According to the executive, this model eliminates concerns about insufficient cash flow to meet payment obligations. To ensure timely offer redemptions and repayments, the finance team builds up reserves in advance, calculating the monthly liquidity needs.

In summary, by expanding its working capital, RTL Alliance has been able to enhance its financial services for clients — specifically, offering more flexible payment terms. To illustrate the effect, imagine a company transporting 500 containers monthly from China to Belarus. At $5,000 per container, that’s $2.5 million per month — an amount the business must finance to support client credit terms and delivery reliability.

Recommendations for Prospective Token Issuers

What advice can be given to companies considering issuing tokens to fund their investment projects? Maksim Dodolev cautions that while token issuance is a valuable financing tool, it requires careful structuring — including the calculation of volume, terms, and yield. These parameters must align with the characteristics of the investment project and the cash flow it generates.

Here are three key principles that always apply to companies entering the public debt market:

1. Match funding currency with revenue currency.
For RTL Alliance, revenue is received in foreign currency, as contracts for international freight forwarding between residents in Belarus are allowed in foreign currency. This makes foreign currency-denominated token issuances viable. However, for companies earning in Belarusian rubles, issuing foreign currency tokens is risky.

“It all comes down to whether you can pass on exchange rate fluctuations to product pricing — and whether your customers can absorb that price,” says Dodolev. “So, if your contracts are in rubles, your tokens should be ruble-denominated to avoid direct FX losses reflected in your accounting.”

2. Align token maturity with the project timeline.
The maturity of issued tokens should match the payback period of the investment project.

“If your project has a five-year ROI but your token matures in three, you’ll be stuck without sufficient cash to repay the issue when it’s due.”

3. Align return rates with profitability.
The yield offered to investors must be sustainable relative to the company’s margins. Debt that’s too expensive can erode profitability and create liquidity gaps.

“The profit margin on your portfolio must cover interest expenses — otherwise, negative profitability will eventually lead to cash shortfalls and potential bankruptcy,” Dodolev explains.

These three factors, he says, are fundamental for any token issuance strategy.

 

Tokens are not a means of payment, are not backed by the state, and the acquisition of tokens may result in the complete loss of funds and other civil rights objects transferred in exchange for tokens (including due to token value volatility; technical failures (errors); or unlawful actions, including theft).

Source: myfin.by