Recently, the National Development and Reform Commission (NDRC for short) officially promoted China Enterprise Cloud Chain Financial Information Service Co., Ltd. (referred to as China Enterprise Cloud Chain) and deepened the typical experience of financial services for private and small and micro enterprise. The enterprise registered in Tianjin Economic-technological Development Area (abbreviated as TEDA) uses the Internet mindset to realize the credit transfer of core enterprises through technological and financial innovation, give full play to the long tail effect brought by the Internet, benefit private enterprises and small and medium-sized enterprises in the upstream and downstream of the supply chain, and solve the financing problems for enterprises. It will also reduce the financing costs of enterprises, and thus promote the integration and development of large and medium-sized enterprises.
Technological innovation helps create a new model of supply chain finance.
The data shows that the demand for accounts receivable financing in the country exceeded 20 trillion yuan in 2018, but under the traditional supply chain finance model, only 1 trillion yuan of financing needs were met, and mainly concentrated in core enterprises and first-tier upstream suppliers. The majority of private, small and medium-sized micro-suppliers at the end of the supply chain face huge funding gaps. SMEs are a new force in national economic and social development. However, as the international and domestic market environment changes, the problems of rising production costs and financing difficulties are becoming more and more prominent.
In 2015, China CRRC joined 11 state-owned enterprises such as China Railway Construction and SINOMACH, 2 financial institutions such as Postal Savings Bank and Industrial and Commercial Bank, 6 local enterprises such as Beijing Shougang and BAIC Group, and 4 private companies including Kingdee Software and Zhidesheng Co., Ltd. to establish the China Enterprise Cloud Chain and settled in the TEDA in the same year.
“Traditional factoring models are based on the credit of suppliers, but they have added a financing method for these enterprises, but they have not effectively solved the problems of insufficient credit and high financing prices.” Liu Changbo, vice president of China Enterprise Cloud Chain Financial Information Service Co., Ltd. said that in order to solve this problem, the China Enterprise Cloud Chain has created a new model of supply chain finance with technological innovation, and has become the initiative to confirm the power of passive enterprises, and to transfer the core product Cloud Letter through Internet technology. Sharing the high-quality credit of core enterprises, the small and medium-sized micro-supplier enterprises at the end of the industrial chain can also enjoy the credits given to the core enterprises by financial institutions like banks, and effectively solve the pain points of corporate financing in the supply chain.
The innovation of China Enterprise Cloud Chain in the supply chain financial model has attracted the attention of the national ministries and commissions. It has been listed as one of the mass innovation and entrepreneurship platforms of the central enterprises by the State-owned Assets Supervision and Administration Commission of the State Council. It is also the Internet + and the central cooperative innovation platform supported by the State-owned Assets Supervision and Administration Commission. Not long ago, the China Enterprise Cloud Chain was praised by the National Development and Reform Commission, and as a typical case of deepening the financial services of private and small and micro enterprises, it was introduced in detail in the official wechat account of the National Development and Reform Commission.
Modern financial workshops improve financing efficiency.
Because the supply chain is mostly composed of small, medium and small enterprises, but the amount of single financing is not high, this business is inefficient and costly, and banks and other financial institutions lack sufficient motivation. To this end, China Enterprise Cloud Chain has established a modern financial workshop in TEDA, and established a professional risk control team, financing audit team, and sales customer service team to provide shared common services for banks and enterprises on the platform, greatly reducing the operating costs of enterprises and improving the efficiency of financing.
According to Liu Changbo, the China Enterprise Cloud Chain has completed direct online system integration with ICBC, ABC, and the Postal Bank, and has docked various banks and various financial institutions across the country. In the real trade background, supplier companies can get financing from financial institutions such as banks within 2 hours. Moreover, through Internet technology, the credit of core companies can also penetrate the entire supply chain. For example, a company in CRRC confirmed a 5 million yuan six-month payables through the Cloud Credit. Based on the real trade background, it was transferred online to a ten-tier supplier, involving 35 suppliers for circulation and financing. The limit meets the financing needs of the underlying suppliers, and the financing costs of the suppliers at all levels are the same, and far lower than the market financing price of such enterprises, truly leading financial sector and running the real economy while providing an effective grip for large central enterprises and state-owned enterprises to clear debts.
As of the end of April 2019, there were 25,000 registered enterprises of the China Enterprise Cloud Network Platform, more than 1,600 core enterprises in the line and reserve, and more than 68 billion yuan in online real estate for large enterprises, and 36 billion yuan for SME financing. Among them, financing below 1 million yuan accounted for 86% -- this fully reflects the characteristics of inclusive finance. At the same time, the industry chain triangle debt clearance on the cloud-chain platform exceeded 190 billion RMB.