Factoring means that the seller (creditor) transfers the accounts receivable generated from the goods sales (service) contract with the buyer (debtor) to the factor, and the factor provides services such as business credit investigation, accounts receivable management and collection, credit risk guarantee and trade financing. According to different service subjects, factoring can be divided into two categories: bank factoring provided by banks and commercial factoring provided by commercial factoring institutions. The above example is credit financing under commercial factoring.
product advantages: 1. based on the enterprise's credit status and real trade records, there is no need for mortgage guarantee, and it does not occupy the enterprise's bank credit line, with simple procedures; 2. The products cover every link in the supply chain of import and export trade, including raw material cost financing, trade financing, logistics cost financing, etc., and are especially suitable for foreign trade enterprises; 3. Generally, it takes 3 to 6 months as a cycle, which is conducive to improving the capital turnover rate of enterprises. Business process: 1. The applicant enterprise applies to the factor; 2. The factor conducts credit investigation and evaluation on the buyer in the transaction; 3. The factor determines the financing amount for the enterprise; 4. Both parties sign a commercial factoring agreement; 5. Achieve financing.
financing case
company a is a small and medium-sized production-oriented export enterprise, and the payment settlement method is "TT", and it usually takes more than one month after the goods are shipped. Limited by the liquidity, the company can't undertake the business with long account period, which limits the pace of development. After contact, Company A realized credit financing of supply chain through commercial factor Company C (Avenue Technology Company). Company C screened out high-quality customers for it, and Company A "borrowed" the credit of these high-quality customers, and immediately obtained the financing service of Company C after shipment, and got the payment. Subsequently, Company C gave a credit rating to Company A, providing it with raw material cost financing and logistics cost financing, which enabled Company A to obtain financing services for related links in the supply chain by virtue of trading orders. After Company C provided financing services to Company A, the capital turnover rate of Company A increased from 3.8 times a year to 6 times, the efficiency of capital use was significantly improved, the company's customers increased from more than 2 to more than 4, and the profits doubled. The operation method of warehouse receipt pledge credit is: the enterprise stores the goods in the warehouse designated by the warehousing company, and pledges them in the bank with the warehouse receipt issued by the warehousing company as the financing guarantee, and the bank gives credit to the enterprise according to the pledged warehouse receipt. This financing product is suitable for enterprises with stable purchase and sale channels and inventory as their main assets. The advantages of this financing product are as follows: 1. Generally, a financing line with a higher proportion of warehouse receipts or collateral value can be obtained, and the term is longer. 2. When an enterprise needs goods, it can replenish its exposure and withdraw the pledge at any time, which increases the flexibility of enterprise operation and fund management.
financing case
company a is a long-term commercial and trading enterprise engaged in steel trade, and its 5, tons of cold-rolled steel plate inventory is stored in a third-party independent warehouse. In order to revitalize the inventory, Company A pledged this batch of cold-rolled steel plates to Bank C, and applied to Bank C for warehouse receipt pledge financing. In view of the fact that 5, tons of cold-rolled steel plates are stored in an independent third-party warehouse, Bank C introduced a storage supervision company to supervise this batch of steel plates, and the storage company issued a non-standard warehouse receipt and pledged it in Bank C. The financing ratio is 7% of the value of the non-standard warehouse receipt, and the redemption period of Company A shall not exceed 18 days. After Company A supplements the deposit to Bank C according to its own sales situation, Bank C notifies the warehousing supervision company to release the corresponding goods. This effectively solved the problem of enterprise inventory occupation, revitalized the inventory and saved the capital cost. The operation method of using packaged loan financing is: the special loan issued by the bank to the beneficiary (exporter) of the letter of credit at his application for the purchase, production and shipment of goods under the letter of credit. This product is suitable for export enterprises that have received the letter of credit opened by the importer's bank, but are short of stocking funds. The product advantages of this kind of financing products are as follows: 1. When the exporter is short of funds and can't get the payment conditions of advance payment, it helps the exporter to carry out business smoothly and seize trade opportunities. 2. It does not occupy the exporter's own funds in the stages of production, procurement and other stocking, which can alleviate the liquidity pressure of enterprises.
financing case
company a received an export order of us $4 million from an American customer, and the settlement method was T/T3 days later. Therefore, Company A needs to purchase, produce and ship related goods in China, which leads to a shortage of funds. After recommendation, Company A applied for financing from Bank C in the form of packaged loans, and Bank C provided financing to Company A according to 8% of the export order amount, and the financing funds were specially used for Company A to purchase raw materials from the upstream. After the goods are shipped, Company A submits documents through Bank C and applies for export bills to repay the financing. The operation method of using export bill financing is: after the exporter sends out the goods and submits the documents required by the letter of credit or contract, the bank provides short-term financing to him with the documents submitted. This product is divided into documentary bills of lading under letter of credit, documentary bills of lading under letter of credit, D/P collection bills of lading, D/A collection bills of lading and so on. According to the currency of negotiation, it can be divided into foreign currency negotiation and RMB negotiation. This product can be used to meet the short-term financing needs of exporters under letters of credit or collections. The advantages of this financing product are as follows: 1. It can be repaid in advance before the importer pays for the goods, thus speeding up the capital turnover. 2. Compared with working capital loans, financing procedures are simple and easy. 3. It can increase the current cash flow, thus improving the financial situation. 4. The financing currency can be selected according to the interest rate level of different currencies, thus saving financial expenses. 5. For the export documents that are consistent with the documents under the letter of credit, even if the exporter has not approved the credit line in the bank, it can also handle the export bill.
financing case
company a is a circulating trading enterprise, and now it exports a batch of textile products by letter of credit, and the goods have been shipped. In order to speed up the flow of funds, the company adopts export bill to raise funds from banks, so that they can recover the payment in advance before the importer pays the payment. The escrow loan of export tax rebate account refers to the trade financing business such as the borrower entrusts the special account for export tax rebate to the bank and promises to use the tax rebate in the account as the repayment guarantee to obtain short-term financing or open a letter of credit. Applicable to enterprises with export tax rebate receivable balance. This product has revitalized the export tax rebate funds receivable and accelerated the capital turnover.
financing case
enterprise a mainly exports solar energy products with a tax rebate rate of 17%, so enterprise a proposed to bank b to carry out a trust loan for export tax rebate account, and bank b gave the enterprise financing according to 9% of the balance of the special account for export tax rebate, which effectively solved the financial problem of the enterprise. Policy financing refers to the financing business provided by the bank to the sellers who have taken out credit insurance with China Export Credit Insurance Corporation or other credit insurance institutions recognized by the bank with relevant documents, relevant certificates for taking out credit insurance and indemnity transfer agreement. Applicable enterprises: 1. Enterprises want to avoid the buyer's credit risk and national risk, and have taken out credit insurance; 2. Enterprises have limited liquidity and need to speed up the turnover of accounts receivable; 3. The credit line of the enterprise is insufficient, and it is hoped to expand the financing scale. Product advantages: speed up capital turnover and improve cash flow; Avoid all kinds of risks; Lower the threshold, reduce the quota occupation and expand the financing scale; For the export "policy financing" business, if there is no recourse, the export tax rebate and verification procedures can be handled in advance.
financing case
company a exports machinery and equipment, and the settlement method is a five-year deferred payment letter of credit, and at the same time, it has insured export credit insurance with China Export Credit Insurance Corporation. Although it has been accepted by the issuing bank (paying money every six months), considering the high risk of the issuing bank and its country and the pressure of RMB appreciation, Company A is eager to transfer the export receivables under the letter of credit to the bank to lock in the cost, but it faces two difficulties: 1. The issuing bank has poor credit standing, and no bank is willing to buy the bills it undertakes; 2. The credit line of Company A is insufficient, so it is impossible to handle the discount. After recommendation, Company A applied to the bank for medium and long-term policy financing business without recourse, and realized timely collection. Export discount refers to the bank's purchase of the unexpired forward draft accepted by the bank or the unexpired forward creditor's rights committed by the bank from the exporter under the export letter of credit or the unexpired forward creditor's rights guaranteed by the bank under the documentary collection to meet the short-term financing needs of the exporter under the forward letter of credit. This financing product is suitable for the following three types of enterprises: 1. Exporters have limited liquidity and rely on rapid capital turnover to conduct business; 2. Exporters encounter temporary cash flow difficulties after receiving acceptance/acceptance/guarantee from foreign banks and before receiving payment; 3. Exporters encounter new investment opportunities after acceptance/acceptance/guarantee payment in foreign banks and before collection, and the expected rate of return is higher than the discount rate. The advantages of this product are as follows: 1. Recover the long-term creditor's rights immediately, speed up the capital turnover, and ease the capital pressure. 2. Compared with working capital loans, financing procedures are simple and easy. 3. The financing currency can be selected according to the interest rate level of different currencies, thus saving financial expenses.
financing case
company a now exports a batch of electronic products by using forward acceptance letter of credit as the settlement method. Because the company encountered temporary capital turnover difficulties, it adopted export discount to finance, realizing the purpose of recovering the long-term creditor's rights at once.