supply chain finance

As an enterprise in the supply chain financial management industry, the company has rich experience in supply chain financial services. It can integrate the resources of financial institutions such as banks, insurance companies, and guarantee companies according to the customer's upstream and downstream value chain conditions, business models and credit characteristics. Customer Tailored.

Such as: project financing, accounts receivable financing, mortgage guarantee financing, warehouse receipt pledge, domestic and foreign factoring, foreign exchange collection, foreign exchange payment, issuance of letters of credit and various trade original certificates and other supply chain financial service solutions

(Introduction to Supply Chain Finance) Supply chain financial service is that banks focus on core enterprises, manage the capital flow and logistics of upstream and downstream small and medium-sized enterprises, and transform the uncontrollable risks of a single enterprise into controllable risks of the whole supply chain enterprise. The core system is connected with the core enterprise business platform, and at the same time, it takes advantage of its own electronic settlement platform to integrate the information flow in the supply chain with the guidance of logistics and capital flow, realize the integration of business flow, logistics, capital flow and information flow, and reduce risks. Control financial services at a minimum.

The benefits of supply chain finance:

1. New channels for corporate financing

Supply chain finance provides solutions for the concept and technical bottlenecks of SME financing, and the SME credit market is no longer out of reach. Supply chain finance has begun to enter the attention of many large corporate financial executives. For them, supply chain finance, as a new channel of financing, not only helps to make up for the traditional working capital loan limit compressed by banks, but also through the introduction of financing facilities by upstream and downstream enterprises, the level of their own liquidity needs continues to decline. Due to the intensified competition in the industrial chain and the strength of core enterprises, credit sales account for a considerable proportion in the settlement of the supply chain. The "2008 China Enterprise Credit Risk Status Survey Report" released by Coface shows that sales on credit have become the most widely used payment terms. On the one hand, the existence of a large number of accounts receivable caused by credit sales makes small and medium-sized enterprises have to face the lack of liquidity. On the other hand, the information management, risk management and utilization of accounts receivable, which are potential capital flows of enterprises, are becoming increasingly important to enterprises. Under the new situation, revitalizing corporate accounts receivable has become an important way to solve the financing problems of small and medium-sized enterprises in the supply chain. Some commercial banks have made fruitful innovations in this field. China Merchants Bank's newly launched receivables and payables management system and online domestic factoring system are innovations that have attracted much attention. According to the product manager of the Cash Management Department of China Merchants Bank Head Office, the system can provide comprehensive, transparent and fast electronic accounts receivable management services and domestic factoring business solutions for suppliers and buyers in supply chain transactions. Simplifying the complex operation process faced by traditional factoring business operations is especially helpful for optimizing the confirmation of creditor's rights transfer when the buyer and the seller are located in two places, and helping enterprises to quickly obtain much-needed funds.

2. Significant economic and social benefits

Equally important, the economic and social benefits of supply chain finance are very prominent. With the help of the "group purchase"-style development model and the innovation of risk control methods, the benefit-cost ratio of SME financing has been improved, and it has shown obvious economies of scale. .

According to statistics, the 1,000 largest U.S. companies reduced their liquidity needs by $72 billion in 2005 through improved collection methods, inventory activation, and deferred payments through supply chain finance solutions. Similarly, in 2007, Europe's 1,000 largest listed companies mobilized 46 billion euros of funds from three accounts: accounts receivable, accounts payable and survival.

3. Supply chain finance realizes multi-stream integration

Supply chain finance has well realized the integration of "logistics", "business flow", "capital flow" and "information flow". The physical movement of material data from supplier to demander, including the transportation, warehousing, handling and loading and unloading, distribution processing, and related logistics information of commodities. Business flow: The exchange of business information and trading conditions. Cash flow: refers to the financial matters involved in the purchaser's payment for goods. Information flow: In the entire supply chain, all kinds of information related to logistics and capital flow are also part of logistics and information flow, including purchase orders, inventory records, confirmation letters, invoices, etc. In the supply chain, logistics, business flow, capital flow, and information flow coexist. The combination of information flow and capital flow will better support and strengthen the exchange of goods and services between upstream and downstream enterprises in the supply chain (logistics). ).