Supply chain financial service plan

Part 1: Coal Enterprise Supply Chain Financial Service Plan

First, the business plan concept

The supply chain finance business provided by the bank is to use the coal enterprise as the core enterprise, cooperate with its supply chain and sales chain management strategy, use the control technology of capital flow, logistics and information flow, and utilize the credit enhancement effect of the core enterprise to the core enterprise and A package of structured financial services provided by upstream and downstream companies in multiple or all supply chains and distribution chains around them. Banks mostly use large and medium-sized coal production enterprises as the core enterprises, and carry out financial services including their upstream suppliers and downstream traders to realize ample cash flow of the coal enterprise's overall supply chain and provide overall competitiveness.

Second, the business model

The financing options offered by banks in the coal industry for companies in the supply chain include:

1. For the upstream enterprises of coal enterprises: accounts receivable pool financing, reverse factoring business, revitalizing the accounts receivable of upstream suppliers, improving the cash flow of upstream suppliers; allowing upstream enterprises to obtain accounts receivable early.

2. For the downstream enterprises of coal enterprises: the prepayment financing model, to solve the demand for prepayments for downstream coal-consuming coal producers and traders to purchase coal from coal enterprises;

3. Types of credit: The credits include: working capital loans, bank acceptance bills, domestic letters of credit, payment by the buyer's bill or bill, and commercial acceptance tickets;

Fourth, business advantages

1. For coal mines: relieve the payment pressure on the procurement of materials in the material supply department of coal enterprises. Increase the sales capacity of the coal enterprise transportation and sales department, and obtain more dealer prepayments. Expand sales.

a) Replacing direct credit with indirect credit, optimizing the report, and saving financial costs, can formulate and optimize the cash use plan, properly conduct financial planning, and improve efficiency;

b) Building a financing platform with upstream and downstream enterprises will help core enterprises to further stabilize and strengthen their supply chain;

c) Extend the write-off period for upstream enterprises, obtain large prepayments for downstream enterprises, optimize cash flow, and obtain more favorable terms of trade;

2. For upstream and downstream enterprises:

a) For equipment suppliers, revitalize accounts receivable, accelerate capital withdrawal, and increase capital turnover; for downstream coal purchasers, they can obtain sufficient advance payment funds to purchase coal, increase their purchase volume, and stabilize business. . Thereby expanding the sales volume of coal enterprises.


Part 2: Automotive Industry Supply Chain Financial Service Solution

1. Dealer service plan

● Manufacturer silver program

● Automobile certification supervision program

Vendor silver scheme

Business characteristics:

Belonging to movable property pledge credit

Responsible for the supervision of vehicles and certificates by the professional supervision company with strong strength to improve the efficiency of turnover

Realize the transportation and delivery of vehicle licenses

Need to pay a certain regulatory fee to the regulatory company

Automobile Certification Regulation Scheme

Overview of the plan: It refers to the cooperation between the automobile manufacturers, dealers and the Bank of Communications. The dealers provide credit support for the purchase of products from the automobile manufacturers. The automobile certificate is kept by the Bank of Communications, and the Bank of China releases the certificate according to the status of the dealer's deposit.

Business characteristics:

The automobile certificate can also be kept by the automobile manufacturer, and the Bank of Communications informs the automobile manufacturer to release the certificate according to the status of the dealer’s deposit.

Effectively meet the needs of dealers from the first-level outlets to the secondary outlets

No need to pay the certificate storage fee separately

2. Supplier service plan

● Silver ticket / trade ticket protection

● Domestic factoring

● Domestic letter of credit

● Movable property pledge

3. Commercial vehicle terminal user service plan

● Corporate mortgage

● Personal mortgage

Construction machinery industry supply chain financial service plan

1. Dealer service plan

● Guaranteed warehouse plan

2. Supplier service plan

● Silver ticket / trade ticket protection

● Domestic factoring

● Domestic letter of credit

● Movable property pledge

3. End user service plan

● Corporate mortgage

● Personal mortgage

4. Vendor leasing company service plan

● Rental factoring

Overview of the plan: As the factoring bank, Bank of Communications provides factoring financing for the rent receivable of the leasing company. The manufacturer promises to bear the repurchase responsibility for the rent receivable from the leasing company when the lessee cannot pay the rent payable in full.

Business Process:

Leasing companies buy manufacturers' products

The leasing company signs the lease contract with the lessee

The leasing company transfers the rent receivable to the factoring bank, and the factoring bank issues the factoring financing amount to the leasing company.

The lessee pays the rent to the lending company’s repayment account at the factoring bank on a scheduled basis.

If the lessee is unable to pay the rent payable in full, the Bank will transfer the transferred unpaid rent to the manufacturer.

Business characteristics:

According to the actual situation of the business, it provides two types of factoring financing modes: recourse and non-recourse to the leasing company.

Steel industry supply chain financial service plan

Dealer service plan

According to the annual contract, the monthly sales, and the settlement method and characteristics of the prepaid payment, the Bank of Communications has designed financial products such as the confirmation warehouse, the manufacturer silver, and the movable property pledge for the dealers of the steel production enterprises. By providing financing support for dealers, it effectively solves the problem of monthly payment and lock-up of goods, and helps manufacturers to withdraw money and improve cash flow in advance.

Port industry supply chain financial service plan

According to the rigorous and standardized characteristics of port companies' custody of goods, Bank of Communications and port enterprises actively carry out supervision and cooperation on commodity financing pledge. By providing movable property pledge financing services to mutual customers, the port enterprise's financial value-added service capability will be enhanced, and the financing problems of port customers will be effectively solved, thereby attracting more customers and enhancing the comprehensive competitiveness of port enterprises.

Electronic industry supply chain financial service plan

1. Dealer service plan

According to the settlement methods and characteristics of low-season payment and prepaid payment for domestic electronic enterprises, Bank of Communications has designed financial products such as confirmation warehouses for dealers of electronic production enterprises. By providing financing support for dealers, it effectively solves the problem of locking in supply; it also helps manufacturers to improve cash flow.

2. Supplier service plan

According to the characteristics of domestic electronic production enterprises mainly through credit sales and bills, Bank of Communications has designed financial products such as domestic factoring, silver ticket protection and commercial ticket protection for suppliers of electronic production enterprises. By providing financing support for suppliers, it relieves the financial pressure of suppliers, speeds up the recovery of funds, and improves the efficiency of capital use. At the same time, it provides electronic manufacturers with more competitive forward payment conditions and improves the liquidity of bills.

Chemical industry supply chain financial service plan

According to the cyclical characteristics of seasonal production and sales in the chemical industry, such as fertilizers and asphalt, Bank of Communications can provide financial products such as movable property pledge, manufacturer silver, and confirmation warehouse, aiming to solve the seasonal concentrated purchase of goods by dealers and store the liquidity. The occupation, while ensuring the timely return of the manufacturer's off-season sales funds.

Pharmaceutical industry supply chain financial service plan

1. Supplier service plan

According to the characteristics of domestic pharmaceutical companies mainly through credit sales and bills, Bank of Communications has designed financial products such as domestic factoring, silver ticket protection and commercial ticket protection for suppliers of pharmaceutical companies. By providing financing support for suppliers, it relieves the financial pressure of suppliers, speeds up the recovery of funds, and improves the efficiency of capital use. At the same time, it provides pharmaceutical companies with more competitive forward payment conditions and improves the liquidity of bills.

2. Core enterprise service plan

According to the characteristics of the sales of domestic pharmaceutical companies mainly through credit sales, and the long account period, Bank of Communications has designed domestic financial products such as domestic factoring for pharmaceutical companies. By providing factoring financing for pharmaceutical companies, on the one hand, it speeds up the recovery of corporate funds and improves the efficiency of capital use; on the other hand, it improves financial statements and improves the efficiency of accounts receivable management.

Engineering infrastructure industry supply chain financial service plan

According to the characteristics of the material supplier mainly selling the engineering materials to the owner or the construction party through credit sales, the Bank of Communications can provide domestic factoring for the material supplier on the premise that the project approval has been passed, the capital has been put in place, and the project financing has been implemented. On the other hand, Bank of Communications can design movable property pledge for material suppliers to combine financial products such as domestic factoring and commercial ticket protection to solve the problems of material procurement, transportation, storage, delivery, and payment withdrawal. Increase the supplier's capital turnover efficiency by occupying the liquidity of suppliers.

Coal industry supply chain financial service plan

According to the characteristics of the material supplier mainly selling the engineering materials to the owner or the construction party through credit sales, the Bank of Communications can provide domestic factoring for the material supplier on the premise that the project approval has been passed, the capital has been put in place, and the project financing has been implemented. On the other hand, Bank of Communications can design movable property pledge for material suppliers to combine financial products such as domestic factoring and commercial ticket protection to solve the problems of material procurement, transportation, storage, delivery, and payment withdrawal. Increase the supplier's capital turnover efficiency by occupying the liquidity of suppliers.

Logistics Industry Supply Chain Financial Service Solution

Movable pledge scheme

● Static mode

Features: Pledge for the specified goods. Each time the goods are picked up, the enterprise needs to apply to the Bank of Communications and pay the delivery deposit. The Bank can issue the delivery notice to the logistics company.

● Dynamic mode

Features: A pledge not less than the value of the specified goods. When the enterprise extracts goods that exceed the value of the specified goods, it does not need to apply to the Bank of Communications, and can directly handle the delivery procedures to the logistics enterprise; otherwise, it must apply to the Bank of Communications and pay the delivery deposit or goods. When the company replenishes the goods, the logistics enterprise shall verify the value of the goods according to the price of the goods previously agreed with the Bank of Communications.

● Manufacturer silver mode

Features: For the whole process of pledge supervision, that is, the logistics company undertakes the pledge supervision of the whole process of the goods being sent to the destination warehouse and stored in the warehouse.

● Sea and land warehouse mode

Features: For the whole process of pledge supervision, that is, the logistics company undertakes the goods from the port of export to the destination port, after completing the customs declaration, transport to the destination warehouse and the pledge supervision of the whole process during the storage of the warehouse.

● Under the international trade model

Features: For the whole process of pledge supervision, that is, the logistics company undertakes the goods to reach the destination port, after completing the customs declaration, transport to the destination warehouse and the pledge supervision of the whole process during the storage of the warehouse.


Part 3: Supply Chain Financial Services Solution

Problems or needs you may encounter

● Purchasing link:

Financing ability is weak, and procurement funds are insufficient;

Inventories in transportation and storage occupy a large amount of funds;

Deposits and full payments take up a large amount of funds;

● Production process:

Semi-finished products and finished products occupy a large amount of funds;

● Sales link:

Increase buyer's cash payment ability and expand product sales;

Accelerate the turnover of accounts receivable and improve the ability to liquidate;

Improve the efficiency of payment and settlement.

......

What we can do for you

With a professional team and rich market experience, we are committed to providing comprehensive financial services such as financing, settlement and risk management for upstream suppliers, downstream distributors and end users of core enterprises in the industry chain. The main solutions include :

● Dealer service: confirmation warehouse, manufacturer silver, movable property pledge

● Supplier services: silver ticket protection, commercial ticket protection, domestic factoring, domestic letter of credit, movable property pledge

● End-user services: corporate mortgage, personal mortgage, rentable factoring, buyer's credit

......

The characteristics and advantages of our products

Our supply chain products are based on core enterprises. On the one hand, we will effectively inject funds into the relatively weak upstream and downstream supporting small and medium-sized enterprises to solve the problem of financing difficulties and supply chain imbalances of SMEs; on the other hand, we will integrate bank credit. The purchase and sale of downstream enterprises enhance their commercial credit, promote long-term strategic synergy between SMEs and core enterprises, and enhance the competitiveness of the supply chain. Supply chain finance makes the whole supply chain form a closed-loop cyclical model, achieving the perfect combination of “logistics”, “funds flow” and “information flow”, reducing the cost and risk of the entire supply chain.

The advantages of our supply chain finance:

● Sound network layout: Our bank has institutions and networks that radiate nationwide and overseas;

● Rich customer resources: The Bank has a wide range of valuable and valuable core enterprises and upstream and downstream SME customers;

● Innovative product system: Our products cover all aspects of the supply chain and rapidly innovate products and services according to the individual needs of customers;

● Integrated service plan: Our supply chain finance is closely integrated with cash management and investment banking to provide one-stop integrated financial solutions;

● Strong head office coordination ability: Under the unified coordination of the head office, the branches of the National Bank of Communications provide unified and standard financial services for the customer groups in the supply chain.

We can help you achieve your goals

● Become a stable upstream and downstream partner of the core enterprise

● The financing capacity is effectively enhanced and the financing cost is reduced.

● Flexible and diverse guarantee methods

● Expand product sales and increase cash sales ratio

● Accelerate accounts receivable turnover and enhance liquidity

● Improve supply chain operation efficiency and reduce supply chain costs

● Improve the efficiency of payment and settlement

The conditions and materials you need to handle your business

According to the industry characteristics and different needs of your company, we will tailor a personalized service plan for you, and after reaching a program consensus, we will sign a supply chain business cooperation agreement and related business contracts.