The “Tianjin answer sheet” of commercial factoring: the total assets exceeded 300 billion yuan for the first time

Compared with banks, commercial factoring companies are often regarded as “fillers” in the financial industry. However, as one of the typical forms of supply chain finance, commercial factoring plays a unique role in improving the resilience of the industrial chain and supply chain, especially “stabilizing the chain”, “replenishing the chain” and “strengthening the chain”.

Commercial factoring is a comprehensive financing service based on the transfer of accounts receivable. According to the current policies and regulations, commercial factoring companies can engage in business including factoring financing, sales account (classified) account management, accounts receivable collection, non-commercial bad debt guarantee, etc. Among them, the factoring financing business accounts for the largest proportion.

Eleven years ago, Tianjin Binhai New Area was approved to carry out pilot commercial factoring. Through the first trial, the industry has now become a beautiful business card of Tianjin’s financial industry. Under the background of wide coverage and strong innovation, the city’s total commercial factoring assets exceeded 300 billion yuan for the first time this year.

Zhonghe Zhizhi Factoring

Help solve short-term capital turnover pain points

The longest term of “Chemical Treasure” IOTiao factoring financing is 60 days

As a factoring practitioner, one of the most gratifying things for Wang Yu recently is that the “Chemical Treasure” Baitiao factoring financing product was selected into the Tianjin 2022-2023 Typical Cases of Commercial Factoring Industry Serving the Real Economy released by the Municipal Bureau of Finance in July this year (referred to as factoring typical cases). This product was launched by Zhonghe Zhizhi Commercial Factoring (Tianjin) Co., Ltd. (referred to as Zhonghe Zhizhi Factoring). Wang Yu was one of the business personnel who participated in the early product development.

Up to now, more than 10 small, medium and micro enterprises have obtained financing through the above products. According to the data provided by Zhonghe Zhizhi Factoring to reporters, the amount of a single financing is usually 500,000 yuan to 2 million yuan. “However, according to the transaction stickiness between customers and the platform, the price fluctuation of coal chemical products market, etc., the financing amount will also change dynamically, so as to better meet the actual needs of customers.” The relevant person in charge of the company said frankly.

The birth of “Chemical Treasure” Baitiao factoring financing products can be traced back to May 2021, but the real start of “increasing volume” will be in 2022. “Last year, we officially promoted this product. Before that, it could only be regarded as a ‘trial order’.” The relevant person in charge of Zhonghe Zhizhi Factoring told reporters that the company developed this product because it is convenient and quick and can solve customers’ short-term capital turnover pain points. original intention.

In Wang Yu’s impression, the first customer to obtain financing from “Chemical Treasure” IOTiao Factoring was a small, medium and micro enterprise that produced ammonium sulfate in other places. The company was introduced by a coal chemical e-commerce platform. After that, he and his colleagues actually visited the company. “The company is in the middle of the supply chain, and there is a situation where funds are occupied by downstream customers. At that time, the main appeal was to improve the turnover rate of funds.” He said.

The reporter was informed that the “Chemical Treasure” Ioutiao factoring financing product developed by Zhonghe Zhizhi Factoring actually relies on the aforementioned coal chemical e-commerce platform. By cooperating with the e-commerce platform, Zhonghe Zhizhi Factoring can retrieve the historical transaction data of enterprises with financing needs on the platform, verify the authenticity of their upstream and downstream trade backgrounds, and ensure the corresponding accounts receivable of purchase orders The title of the loan is clear and transferable. Then, based on real purchase orders, without collateral or other guarantees for credit enhancement, the factoring company can provide financing to SMEs on the platform. “To obtain financing, the relevant enterprises should have at least one year of transaction data on the coal chemical e-commerce platform.” The relevant person in charge of Zhonghe Zhizhi Factoring revealed.

Factoring financing is usually used for short-term capital turnover and is based on the transfer of accounts receivable. “According to the actual repayment situation of the industry, the longest financing period we give to the ‘Chemical Bao’ Baitiao factoring financing customers is 60 days.” The relevant person in charge of Zhonghe Zhizhi Factoring said that the repayment cycle of the coal chemical industry is roughly 30 days to 45 days, so the aforementioned financing period can fully meet the actual needs of customers.

In addition to the “Chemical Treasure” IOTiao factoring financing products, Zhonghe Zhizhi Factoring’s “Order Treasure” and “Performance Treasure” factoring financing products were also selected as typical factoring cases. “In recent years, the company has been deeply involved in the supply chain finance field mainly in the steel industry, and its business scale has steadily increased.” The relevant person in charge of Zhonghe Zhizhi Factoring said, “In addition to the ‘order treasure’ and ‘performance treasure’, the company has successively launched ‘ Financing products such as credit sales treasure, “manufacturer’s silver” also aim to provide financing services for many small, medium and micro enterprises in the upstream and downstream of the steel industry, thereby meeting their short-term capital turnover needs.”

Epec Factoring

Deeply cultivate the field of petroleum and petrochemical

The financing amount is generally 50% of the order amount

“If a financing company has a sales order worth up to 10 million yuan signed with a subsidiary of Sinopec, it can obtain an order factoring financing line of about 5 million yuan from the company.” Recently, Epec Commercial Factoring Co., Ltd. (referred to as Yipaike Factoring) The relevant person in charge told reporters that the order factoring financing that customers can obtain from the company is generally 50% of the order amount.

In July this year, Epec Factoring became one of the typical factoring cases by virtue of the order factoring financing service provided to a company in Dalian. It is understood that this Dalian company mainly provides large-scale high-end equipment, engineering general contracting services and product life cycle intelligent service solutions for the petroleum and petrochemical, automotive industry, aerospace, new materials and other fields. Up to now, E-Pay Factoring has provided more than 120 million yuan of factoring financing.

“As an enterprise in the field of high-end equipment manufacturing, this Dalian enterprise can obtain order factoring financing services provided by the company only through sales orders signed with core enterprises in the supply chain. The shortage of funds in the production stage.” said the relevant person in charge of Yipaike Factoring.

Although it was only selected as a typical case this year, Epac Factoring actually engaged in the order factoring business earlier.

“As early as August 2018, the company started to engage in order factoring business. This business is mainly for suppliers with subsidiaries of Sinopec as purchasers.” The relevant person in charge of Epac Factoring told reporters, “These suppliers After signing a trade contract with a subsidiary of Sinopec, you can submit an order factoring application to us. Up to now, Epac Factoring has provided more than 9 billion yuan in order factoring financing for more than 50 companies.”

The person in charge of Epac Factoring said frankly that the difficulty of the order factoring business is that although the financing company has sales orders, there are still many uncertainties in production and supply, and the final settlement amount cannot be determined when the business is carried out. “We mainly use various methods such as internal and external inquiry channels to conduct credit reviews on financing companies in order to control business risks.” He said.

As a factoring company affiliated to Sinopec’s industrial and financial holding company, Epac Factoring is registered in Tianjin. In terms of business layout, this company has obvious tendencies. According to reports, Epac Factoring is deeply involved in the field of petroleum and petrochemicals, actively responding to the comprehensive needs of enterprises in the industrial chain for settlement and financing, and helping to improve the operating efficiency of the industrial chain.

“In addition to order factoring, the company also provides financing services such as delivery factoring and pool factoring.” The relevant person in charge of Yipaike Factoring said that according to customer needs, the company provides highly targeted financing at different business stages Products to meet the cash flow needs of customers.

Longxin Factoring

The loan amount of most single stores is 1 million yuan

The whole process has been realized online operation

Individual industrial and commercial households and small and micro business owners scattered in the commercial street are the main service objects of Longxin International Commercial Factoring (Tianjin) Co., Ltd. (referred to as Longxin Factoring). Based on the transaction scenarios during procurement between customers and upstream wholesalers, the company builds a fully online and standardized factoring business process to provide factoring financing services for customer procurement business.

“The annualized return on investment in the gold and jewelry industry is around 20%, so the owners of these stores have great incentives to open more stores. An owner may have multiple jewelry stores, and the inventory value of a single store is usually between 6 million and 8 million yuan. About 60% of the inventory is gold. Although it has a high value, it is movable property and is often not recognized by traditional financial institutions. The owners of these jewelry stores have a large demand for funds, and they often go to Buying two or three kilograms of gold, factoring financing can solve their financing problems.” Wang Riyong, senior director of Longxin Factoring, told reporters that they currently serve nearly 200 customers, and most of the individual stores have a loan amount of 1 million yuan.

During holidays every year, Longxin Factoring will release more loans than usual. Taking the “October” Golden Week and the Spring Festival holiday as examples, the loan amount during these two periods accounted for more than 30% of the annual loan amount. “When we inspect the stores we cooperate with, we will look at the scale of the store, the brand it represents, the location of the business district, the market share, the asset-liability ratio, etc.” Wang Riyong said.

It is understood that Longxin Factoring has realized the online operation of the entire process of data submission, contract signing, loan lending, repayment, post-financing management, etc., allowing customers to complete business processing without leaving home. If the customer has a high degree of cooperation, it generally takes only two or three days from application to loan release. Wang Riyong told reporters that more than 90% of the company’s customers have a financing amount of 1 million to 3 million yuan. Up to now, Longxin Factoring has provided nearly 200 million yuan in factoring financing for jewelry stores and gold stores.

Guoyun win-win factoring

80% to 90% discount

Building a financial platform for information sharing

Among typical factoring cases, Guoyun Winwin (Tianjin) Commercial Factoring Co., Ltd. (referred to as Guoyun Winwin Factoring) was listed because of its innovative business model of “commercial factoring company + supply chain enterprise”.

The “commercial factoring company + supply chain enterprise” business model includes three aspects: business collaboration, platform collaboration and risk management collaboration. Guoyun Win-Win Factoring, together with Ningxia Supply Chain Group and other companies and institutions, built a financial service platform of “commercial factoring companies + supply chain enterprises” to realize information sharing and provide customized services for coal traders and logistics transporters on the platform .

“At present, we mainly serve two supply chain companies that supply coal, cement, and steel to large state-owned enterprises such as the five major power generation groups. 7%.” Cui Jinxi, deputy general manager of Guoyun Gongying Factoring, told reporters that the company uses the accounts receivable generated by supply chain companies in the supply process as the underlying assets to provide factoring financing support for them. Currently, the discount rate on these receivables is generally 80% to 90%.

Under the cooperation model of “commercial factoring company + supply chain enterprise”, the number of upstream and downstream high-quality customers served by Guoyun Win-Win Factoring around 2 supply chain companies has exceeded 150, and its business territory has expanded to Xinjiang, Gansu and Qinghai , Shaanxi, Shanxi, Inner Mongolia, Hebei, Liaoning, Anhui, Sichuan, Guangxi, Jiangsu and other places. In the entire industrial chain, Guoyun Win-Win Factoring has played the role of “stabilizing the chain” and “replenishing the chain”, solving the financing difficulties of small and micro enterprises.

According to Cui Jinxi, the factoring pool business is one of the main businesses of Guoyun Win-Win Factoring. This business does not set the financing amount and time limit based on the amount and time limit of a single invoice, but based on the fact that the seller transfers its accounts receivable from a specific buyer or all buyers to the factoring company as a whole, and the factoring company accepts the receivables In the case of maintaining a stable balance of accounts, a certain proportion of financing funds will be provided to the seller according to the balance of accounts receivable. “Guoyun Win-Win Factoring has established a factoring pool for each supply chain company, and all accounts receivable from specific customers of the supply chain company can be placed in the factoring pool. Check the accounts receivable. If the balance is not enough, we will notify the supply chain company to add new accounts receivable into the pool in time; if the supply chain company has no new accounts receivable into the pool, it should finance the difference in time The amount will be returned to Guoyun Win-Win Factoring.” He said.

In 2022, Guoyun Win-Win Factoring will support supply chain companies with 300 million yuan of funds through the business model of “commercial factoring company + supply chain enterprise”, and complete the guaranteed supply of more than 1.5 million tons of coal and nearly 20 million yuan of fresh vegetables. The total trade volume of supply chain companies exceeded 1.8 billion yuan.

Focus on the first order

The first N+N full-form factoring asset securitization product for central enterprises

Compatible with a variety of underlying assets

Two phases have been issued involving 125 core enterprises

In addition to shareholder investment and bank loans, asset securitization has now become an important financing method for some factoring companies. According to the definition of the China Securities Regulatory Commission, the asset securitization business refers to the business of issuing asset-backed securities based on the cash flow generated by the underlying assets as repayment support, credit enhancement through structural and other methods. At present, the underlying assets that can be used for asset securitization are very diverse, such as accounts receivable, lease claims, credit assets, trust beneficiary rights, etc. For factoring companies, asset securitization can not only provide financing support, but also revitalize stock assets and optimize asset-liability structure.

In terms of exploring factoring asset securitization, Sinochem Commercial Factoring Co., Ltd. (Sinochem Factoring for short) with the background of a central enterprise is one of the pioneers in the industry. According to the data provided by the company to reporters, as of now, the cumulative issuance scale of its asset securitization products has reached 28.504 billion yuan. In the first half of this year, Sinochem Factoring’s action that attracted wide attention from the industry was the successful issuance of the first N+N full-form factoring asset securitization product of a central enterprise. It is worth noting that this product became one of the typical cases of factoring in July this year.

“Compared with general factoring asset securitization products, the underlying assets of Sinochem Factoring N+N full-form factoring asset securitization products can be credited by multiple core companies, and their creditors can also be creditors in the industry chain. Many suppliers and dealers, most of them are small, medium and micro enterprises. In terms of basic asset types, this product is compatible with various basic assets such as general accounts receivable factoring and account receivable factoring with commercial notes.” The relevant person in charge of Sinochem Factoring said that since the product is issued on the shelf, it can be approved once and issued multiple times, which is more efficient.

The reporter learned that under the shelf of N+N full-form factoring asset securitization products, Sinochem Factoring has issued two phases of products in March and April this year, both with a term of 10 months. Among them, the first-phase product issuance scale is 100 million yuan, and the issuance rate is 3.19%; the second-phase product issuance scale is 211 million yuan, and the issuance rate is 3.10%.

“The basic assets of the two phases of products that have been issued are all accounts receivable factoring assets settled by electronic commercial acceptance bills, involving 125 core companies in the supply chain.” The relevant person in charge of Sinochem Factoring told reporters that in the traditional In the process of accounts receivable factoring business, the company found that customers generally have accounts receivable financing needs with bills as the means of payment. In response to this market demand, Sinochem Factoring began to carry out note factoring business in 2019. Up to now, the company’s bill factoring business has accumulated more than 2 billion yuan in loans, and the number of small, medium and micro enterprises in the direct or indirect service supply chain has reached more than 3,900.

In terms of transaction structure design, the two phases of N+N full-form factoring asset securitization products issued by Sinochem Factoring are divided into two layers. Among them, the priority accounted for 99%, which was issued to investors; the secondary accounted for 1%, which was held by the company itself. “Recently, we are intensively preparing for the issuance of the third phase of the product, hoping to obtain a lower issuance price.” The relevant person in charge of Sinochem Factoring told reporters, “In addition to the bill factoring business, we will also use N+N full-form factoring asset securitization storage racks issue more types of factoring assets securitization. For example, the company developed a new supply chain financial product ‘Huacaijin’ this year, which belongs to the category of electronic creditor’s rights certificates Factoring assets. At present, we are also studying the securitization issuance plan based on this asset.”

The first “no credit enhancement” central enterprise supply chain asset securitization product

Three-tier structure design guides investors to focus on the underlying assets themselves

In asset securitization business operations, product structure design is an important part. Through this, asset securitization can provide investors with securities products with different risk and return characteristics, thereby meeting their diversified investment needs.

In order to issue asset securitization products, financiers usually require securities companies as managers to set up special asset-backed plans for them. Judging from past cases, it is a common practice to set up two levels of senior asset-backed securities and subordinated asset-backed securities under a special asset-backed plan. Unlike subordinated asset-backed securities, which are often held by financing parties, senior asset-backed securities need to be sold to investors. In order to attract investors to invest, senior asset-backed securities generally require additional credit enhancement to improve credit rating. For example, in order to obtain high-grade ratings for senior asset-backed securities, some factoring companies not only select high-quality underlying assets, but also ask group companies or guarantee companies to provide guarantees for them.

However, China Power Construction Commercial Factoring Co., Ltd. (referred to as Power Construction Factoring), a factoring company under the central enterprise China Power Construction Group Co., Ltd. (referred to as Power Construction Group), issued the first domestic “no credit enhancement” central enterprise supply Chain asset securitization products. As of the end of July this year, this factoring company registered in Tianjin has issued a total of seven “no credit enhancement” products.

“The company began to explore the ‘no credit enhancement’ asset securitization model at the end of 2021, and then successfully issued the first ‘no credit enhancement’ central enterprise supply chain asset securitization product in July 2022, with a scale of 500 million yuan and a period of 8 months.” The relevant person in charge of Power Construction Factoring told the reporter, “In order to realize the issuance of ‘no credit enhancement’, this product mainly relies on the quality of the cash flow of the underlying underlying assets, and by improving the dispersion of the underlying assets and thickening the secondary Asset-backed securities security cushion transaction structure design and other methods guide investors to pay more attention to the underlying assets themselves, and truly bring asset securitization products back to their essence.”

It is understood that the basic assets of the first phase of “no credit enhancement” supply chain asset securitization products of Power Construction Factoring are the accounts payable of the member companies of Power Construction Group to their upstream suppliers. The accounts payable rely on the “Power Construction Rongxin” electronic creditor’s rights certificate, and Power Construction Factoring provides factoring of accounts receivable for suppliers to form factoring assets.

The relevant person in charge of Power Construction Factoring told reporters that in terms of transaction structure design, the company’s first phase of “no credit enhancement” supply chain asset securitization products is subdivided into priority A level on the basis of traditional priority and secondary Asset-backed securities, senior class B asset-backed securities, and subordinated asset-backed securities accounted for 90%, 5%, and 5% of the scale in sequence. Relevant information shows that its senior class A asset-backed securities are rated AAA, and its senior B class asset-backed securities are rated AA+.

Industry Watch

Wide coverage and strong innovation

Tianjin Commercial Factoring “Stable Expansion”

As close as Hebei and Shandong, as far as Ningxia and Xinjiang, the business scope of Tianjin Commercial Factoring Company has become wider and wider in recent years. The relevant person in charge of a central enterprise commercial factoring company registered in the Tianjin Pilot Free Trade Zone told reporters that as of now, the company has served nearly 4,000 small, medium and micro enterprises, and its business has covered more than 20 provinces in China. “In September 2021, the company began to carry out digital upgrades. Since then, the related business volume has increased significantly. For example, the increase last year exceeded three times.” He said.

For Tianjin’s commercial factoring industry, this year is a year of leapfrog development. Since Tianjin Binhai New Area was approved to carry out commercial factoring trials in 2012, the city’s total commercial factoring assets exceeded 300 billion yuan for the first time this year. At present, the industry is still expanding rapidly, and many foreign companies are competing to set up commercial factoring companies in Tianjin. From July this year alone, Sino-Singapore (Tianjin) Commercial Factoring Co., Ltd. and Tianjin Shengchuang Commercial Factoring Co., Ltd. were approved to be established.

Different from bank loans, factoring financing is premised on the transfer of accounts receivable generated by real transactions in the supply chain, which can eliminate the collateral or pledge requirements of traditional credit. It is precisely based on such a feature that factoring financing plays an extremely important role in helping the industrial chain and supply chain “stabilize”, “replenish” and “strengthen the chain”.

Today, factoring financing has spread across all walks of life. It is worth noting that, behind the expansion of the industry’s asset scale, Tianjin Commercial Factoring Company is also constantly innovating its business model to help the development of the real economy. For example, some commercial factoring companies have developed a “full-chain pool” factoring financing product, which has effectively revitalized the accounts receivable assets of small, medium and micro enterprises in the automobile supply chain; “Factor” business model, relying on this model, customers can withdraw financing at any time according to actual needs, effectively meeting short-term financing needs, and improving the convenience of factoring financing; some commercial factoring companies through “factoring + equity” The financing model supports new energy projects such as wind power and photovoltaics, and helps key construction projects meet standards and improve quality.

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