What Is Supplier Financing?

Supplier financing is a standardized financing product developed by Minsheng Bank. It refers to the premise of a bank that has signed a cooperation agreement with a core buyer on supplier financing based on the high-quality payment ability of the core buyer in the supply chain (hereinafter referred to as the "core buyer"). Based on real product or service transactions between buyers and sellers, and pledged or transferred supplier receivables as the main risk control method, it provides comprehensive solutions for short-term financing services to suppliers designated by core buyers in bulk.

Supplier financing

Right!

Supplier financing is a standardized financing product developed by Minsheng Bank, which refers to the bank's high-quality payment capacity of core buyers in the supply chain (hereinafter referred to as "core buyers").

1. Achieve a win-win situation among the core buyers, suppliers and banks;

2. Solve the financing difficulties of suppliers lacking effective mortgage guarantee measures;

3. The financing method is based on the real transactions between the two parties and is flexible.

1. Suppliers that are recommended in writing by core vendors and meet the relevant conditions of the bank;

2. Continuously provide products or services to core manufacturers for at least one year;

3. The credit history of the supplier and its actual controller is good;

4. There is no relationship between suppliers and core vendors;

5. The actual payment ratio of core vendors to suppliers in the past 12 months is not less than 65%;

6. The supplier has not signed a debt restructuring agreement as a debtor in the past 12 months;

7. The supplier's latest financial statements show that the asset-liability ratio does not exceed 80%;

8. The total profit of the supplier in the last year is positive;

1. Corresponding financing mode:

Supplier's single business financing ratio: A single financing is determined by [(1-average down payment ratio) × withdrawal factor], of which: the average down payment ratio is the down payment of the core buyer's all trading contracts of the supplier in the past year The average funding ratio is 90% of the invoice amount.

2. Accounts receivable pool model:

Supplier credit line: The balance of the average monthly accounts receivable between buyers and sellers in the previous year is used as a base, and the supplier's credit line is determined based on a certain pledge rate and other supplementary guarantee methods.

The term of the financing line is one year, of which the single credit term under the corresponding financing model is determined according to the financing method, and the maximum credit term of the order financing single shall not exceed one year; The term does not exceed 9 months, and the maximum term of invoice financing does not exceed 6 months.

Agreed on a case-by-case basis.

1. If the supplier is a private enterprise, its actual controller provides personal unlimited liability guarantee;

2. The supplier pledges all accounts receivable from the core buyer during the period of comprehensive credit of the bank and within 6 months from the due date to Minsheng Bank, and Minsheng Bank is the first pledgee;

3. For application order financing, shipment order financing, and storage order financing, suppliers generally need to provide additional guarantee measures. If they fail to provide additional guarantee measures, Minsheng Bank needs to verify the authenticity of the transaction with the core buyer, and requires the customer After the invoice is issued (within a reasonable period of time), the corresponding copy of the invoice shall be stamped with the official seal and delivered to Minsheng Bank in a timely manner.

Accounts receivable management expenses (if any);

Cost of collateral assessment registration (if any).

1. Agree on supplier financing cooperation plans and conditions;

2. The core manufacturers signed a supplier financing cooperation agreement with Minsheng Bank;

3. The core manufacturers provide a list of suppliers that meet the conditions of Minsheng Bank and other required information;

4. According to the list of suppliers and relevant information, Minsheng Bank approved the overall financing quota and single-family financing quota for each supplier;

5. According to the cooperation agreement, the core manufacturers regularly provide necessary transaction information to Minsheng Bank;

6. According to the framework of the cooperation agreement and the single-family financing conditions, the bank provides financing facilities for individual suppliers' applications.

1. Basic materials required for general credit business;

2. Transactions and settlement documents with core buyers;

3. Sales contract / invoice with core buyer;

4. Other information required by the bank.