1) Product Overview:
Supply chain finance is that CCB relies on the core enterprises with favorable credit status to master the logistic, information flow and cash flow of account payable/receivable of its upstream supplies or/and downstream distributor (“satellite enterprise”) and bind the credit of core enterprises, and integrate the overall risk tolerance capacity of core enterprises and satellite enterprises to offer both of them a package of comprehensive financial service.
2) Product Function/Applicable Target:
1. Export supply chain financing mode:
Core enterprise purchases raw material or related components at home and sells the finished product overseas. Based on the account payable/receivable and goods in stock between the core enterprise and the upstream and downstream enterprises, combining the trading settlement method of the enterprises, it is to offer core enterprise and the upstream and downstream enterprises the related trade financing products in the steps of purchase, production and sales so as to develop a full set of trade financing solution.
2. Import supply chain financing mode:
Core enterprise purchases raw material or related components overseas and sells the finished product at home, and the supply chain develops the form of “N+1+N” with core enterprise as majority; or the core enterprise purchases centrally overseas via domestic purchaser to develop the form of “N+1++1+N” in supply chain. CCB can transact for the core enterprise all import trade financing products and prefix trade financing products for the domestic sales step, and offer the satellite enterprise the domestic trade financing product to meet their demands.
3. Supply chain financing mode with both ends overseas:
Core enterprise purchases raw material or related components overseas or purchase part of the raw material or components at home and sells the finished product overseas. CCB can transacts for core enterprise all export and import trade financing products, and prefix trade financing products for the satellite enterprise.
4. Cross-national credit granting supply chain financing:
Core enterprise is overseas and the major supplier as well. CCB, relying on the credit of cross-national core enterprise, offers export enterprise with supply chain financing service.
3) Product Advantage/Feature:
For core enterprise:
1. Rely on the commercial credit and market position of its own, uses the credit support of bank to supplier and distributor, stabilize the distribution channel and enhance market competitiveness.
2. Extend the bank financing support via supply chain financial service solution to supplier to elevate the percentage of sales on credit to reduce the usage of self-owned fund to lower purchase cost.
3. Rely on supply chain financing to extent self-owned credit to the distributor in manner of credit as repurchase commitment to extend the sales network channel.
For satellite enterprise:
1. Rely on the credit status of core enterprise to obtain credit limit to solve the problems of higher threshold of traditional credit granting, difficulty in implement guarantee.
2. Elevate the fund usage efficiency of its own, expand financing channel, improve product quality and enhance its own competitiveness.