What Is Inventory Financing?

Inventory financing is a policy issued by the CBRC to further increase credit support for technology-based SMEs in the future. On May 5, the CBRC issued the document [2009] 37 of CBRC: To implement the "Outline of the National Medium- and Long-Term Scientific and Technical Plan (2006-2020)" and "Several Opinions of the General Office of the State Council on the Current Financial Promotion of Economic Development" Recently, the CBRC and the Ministry of Science and Technology jointly issued the "Guiding Opinions on Further Increasing Credit Support to Technology-Based SMEs".

Inventory financing

The guidance proposes relevant policies to clarify and improve the bank's credit support for technology-based SMEs. Encourage and guide banks to set up scientific and technological expert advisory committees to provide scientific and technological professional consulting services; to recruit scientific and technological experts in loan review committees,

Members on the trading platform apply to China Textile City for inventory financing. After receiving the application, we designate a logistics warehouse to enter the warehouse, inspect and evaluate.

The applicant shall ship the batch of goods to the designated logistics warehouse in accordance with the location designated by us, and we shall count, inspect, and issue a quantity and quality inspection form.

We informed the bank to process and issue a loan to the enterprise.

The company successfully completed the new order within the agreed time and received the payment from the ordering party. At this point, the company already had sufficient liquidity to demand recovery of the previously mortgaged goods.

The company notified us to redeem the previous mortgaged goods. After receiving the application, we notified the company to pay off the bank loan.

After the enterprise pays off the loan, after the bank has communicated with us, it will issue a warehouse pickup notice to notify the enterprise to return the mortgaged goods. And ended this inventory financing.

If the loan company fails to repay the loan within the agreed time, the bank has the right to entrust our company to handle the sale of the pledged goods. After receiving the commission from the bank to sell, we started to sell the pledged goods. After the sale, the bank loan is repaid first. If the sale proceeds are higher than the loan amount, the excess will be returned to the enterprise and the inventory financing will be ended. If the proceeds from the sale are not enough to repay the bank loan, continue to recover the insufficient loan amount until all bank loans are repaid.