In this year’s government work report, it is proposed to promote the stable operation of the industrial economy, strengthen the supply guarantee of raw materials and key parts, implement the project of ensuring and stabilizing the chain of leading enterprises, and maintain the safety and stability of the supply chain of the industrial chain.
Under the background that the supply chain bears the brunt of the epidemic, the 21st Century Business Herald reporter recently interviewed and investigated all aspects involved in the supply chain financial chain, including commercial banks, third-party platform companies, factoring companies, supply chain enterprises, etc., and learned about the current blocking points of the industry and the Countermeasures of “chain protection, chain protection and excellent chain” in all aspects.
On the one hand, core leading enterprises can introduce their own commercial credit into various transaction scenarios of the supply chain without providing guarantee and increasing risk exposure, such as confirming the rights of accounts receivable, or creating a better financing environment for upstream small and medium-sized suppliers by means of balance replenishment, adjusting sales, cooperating with control of goods, goods repurchase, deposit of margin and so on.
On the other hand, financial institutions have increased their support for enterprises with phased repayment difficulties caused by the impact of the epidemic, and introduced phased relief policies such as adjusting loan elements, borrowing new to repay old, and protecting customers’ credit investigation rights and interests.
At the same time, financial institutions also called on local governments to take the initiative to establish government risk compensation funds to guide financial institutions and real enterprises to tide over difficulties. For example, provide a certain compensation mechanism for the risks of financial institutions in the epidemic environment, and guide the precise drip irrigation of financial running water to chain enterprises.
A special bank meeting triggered by a dealer’s phone call
On March 21 this year, China Zheshang Bank Co.Ltd(601916) Hangzhou Branch received a call from a first-class dealer in Hangzhou Hikvision Digital Technology Co.Ltd(002415) Shanghai. His 2.67 million yuan loan will expire on March 28. However, affected by the epidemic in Shanghai, the express delivery can not be sent and received normally, and most employees work at home, so the company can not operate normally, resulting in the failure to recover the sales payment on time. I hope to postpone the repayment of the loan.
After receiving the call, China Zheshang Bank Co.Ltd(601916) Hangzhou branch coordinated with all departments and offices to complete the extension approval of the customer on March 24 and extended it to June 28 this year. Since then, due to the rapid development of the epidemic in Shanghai and the increased control efforts, Binjiang sub branch of China Zheshang Bank Co.Ltd(601916) Hangzhou branch actively contacted Hangzhou Hikvision Digital Technology Co.Ltd(002415) on April 11 to find out the operation of its dealers in Shanghai. By the end of May 2022, the bank had four dealers in Shanghai with loans due, with an amount of 9.9778 million yuan, of which one had recently proposed to extend.
In order to help dealers in Shanghai overcome the difficulties together, China Zheshang Bank Co.Ltd(601916) Hangzhou branch held the second special meeting of Hangzhou Hikvision Digital Technology Co.Ltd(002415) distribution link project on April 14, which decided to extend the loan to dealers in Shanghai in need.
This is just a case that the banking industry has bailed out supply chain enterprises under the impact of the epidemic this year. The 21st Century Business Herald reporter learned that since March, the automobile industry, building materials industry and FMCG industry have also ushered in a “cold spring”.
Many Geely Auto Dealers in Jilin, Hebei, Shanghai, Guangdong and other areas seriously affected by the epidemic can not operate normally, and some dealers are facing difficulties in repaying when due China Zheshang Bank Co.Ltd(601916) Hangzhou branch, in conjunction with Anxin, Changjiu and other regulatory companies, cooperates with local epidemic prevention and control policies and dealers’ operation, actively communicates closely with Geely Automobile Main Engine Factory and dealers seriously affected by the epidemic, formulates a comprehensive financial rescue plan in advance, and “one policy for one household” to customize the rescue plan for them.
China Zheshang Bank Co.Ltd(601916) Hangzhou branch staff told the 21st Century Business Herald reporter that the branch is planning to introduce an overall supply chain enterprise relief policy. For example, formulate relevant mechanisms for the extension and extension of supply chain financial business to alleviate the repayment pressure of enterprises and individuals who encounter temporary difficulties due to the epidemic.
According to the 21st Century Business Herald reporter, many banks in Jiangsu and Zhejiang have issued support policies for the freight logistics industry, including increasing financial support, handling businesses such as delayed repayment of principal and interest, extension, adjustment of repayment method, renewal of loan without repayment of principal, and effectively providing strong support for the freight logistics industry.
For example, for transportation enterprises greatly affected by the epidemic, in addition to providing chattel pledge loans, increasing the investment of operational loans to truck drivers, optimizing the approval process, reducing fees and transferring profits, and providing exchange rate hedging services, in terms of supply chain financial business, banks rely on core enterprises to issue loans for downstream dealers with online approved lines, and the interest rate is far lower than that of ordinary credit loans. Taking China Zheshang Bank Co.Ltd(601916) as an example, by the end of March 2022, it had provided financing balance of RMB 505 million for 12 transportation and logistics enterprises, such as Sto Express Co.Ltd(002468) , Debang logistics, Chongqing Gangjiu Co.Ltd(600279) Liangjiang logistics, and served 14 upstream and downstream customers in total.
“Double lose” or “win-win”?
21st Century Business Herald reporter learned from banks in Jiangsu and Zhejiang that in recent months this year, a number of supply chain customers applying for extension have emerged in many industries, mainly in the downstream sales link.
“Therefore, this year, our bank’s supply chain finance began to abandon downstream sales businesses and extend to upstream suppliers.” Another bank official told the 21st Century Business Herald reporter.
The home furnishing industry is a typical representative. In May, there were many extension applications, “for example, a large home furnishing enterprise suddenly showed more than a dozen extension applications in our bank in May.” The aforementioned banking industry official told the 21st Century Business Herald reporter.
In addition to home furnishings, the FMCG industry is also particularly concentrated in requiring deferred repayment. There are many cases of deferred repayment in the dealers of beverage enterprises all over the country, and some of them have become non-performing. However, according to the analysis of bankers, this is mainly due to the decline of product competitiveness of core enterprises. When dealers choose to withdraw from the dealer sequence of this core enterprise when it is unprofitable, the constraints imposed on them by the original core enterprises will not exist.
Good supply chain finance can not only solve the financing and guarantee difficulties of upstream and downstream enterprises, but also help enterprises build an industrial digital service platform and improve the competitiveness of core enterprises and supporting enterprises. Banks can fully obtain the capital flow, logistics, information flow and data flow of upstream and downstream small and medium-sized enterprises, so as to shape the intelligent risk control system of supply chain finance and achieve a win-win situation for banks and enterprises.
Hangzhou Hikvision Digital Technology Co.Ltd(002415) is a successful case of supply chain finance to achieve a win-win situation for banks and enterprises Hangzhou Hikvision Digital Technology Co.Ltd(002415) 70% operating income comes from more than 1800 dealers all over the country. At the end of each quarter, the company has a demand for accounts receivable and will collect cash from dealers. Affected by the epidemic, some dealers have some problems in funds, and the accounting period has been extended.
The core enterprise needs to collect money, but the dealer is not up yet. In view of this dilemma, China Zheshang Bank Co.Ltd(601916) and Hangzhou Hikvision Digital Technology Co.Ltd(002415) have reached cooperation. Within a certain total amount, after the downstream dealer orders, the bank can immediately provide financing to the dealer and directly make a payment to Hangzhou Hikvision Digital Technology Co.Ltd(002415) . By the end of March 2022, China Zheshang Bank Co.Ltd(601916) had raised a total of 1.6 billion yuan for Hangzhou Hikvision Digital Technology Co.Ltd(002415) downstream dealers.
Although there are many cases of repayment difficulties of supply chain enterprises affected by the epidemic this year, China Zheshang Bank Co.Ltd(601916) believes that this is only a temporary difficulty. After overcoming the difficulties, these enterprises are still high-quality customers and supply chain finance is still a high-quality business.
Therefore, China Zheshang Bank Co.Ltd(601916) Hangzhou branch proposed to double the balance of supply chain financial loans this year. By the end of March 2022, the balance of supply chain finance business of Hangzhou branch had reached 7.46 billion yuan, an increase of 1.46 billion yuan over the beginning of the year. In order to better serve enterprises, the bank plans to further strengthen its supply chain financial services, and strive to reach 12 billion yuan by the end of the year, double that at the beginning of the year.
