In the socio-economic industrial chain of the Internet today, the logistics industry will inevitably become an important part of the social and economic networks. And because it runs the logistics industry itself to form a special feature of the industrial chain, in this chain, the middle and lower reaches relying on each other, influence each other, forming a special trade system. Logistics industry as capital-intensive industries, strong demand for financing paper from the funding needs of the logistics industry, financing characteristics and policy compliance as a starting point to introduce such a new business factoring financing model.
Logistics industry funding needs and financing characteristics
Logistics industry is a composite type or polymeric type of industrial resources, industrial stream is formed, including transportation, warehousing, handling, packaging, processing, distribution, logistics information industry. More capital-intensive features combined with accounts receivable, resulting in a longer account of the characteristics of the logistics industry has a strong financing needs.
(A) capital-intensive industry
After the logistics company operating services to obtain orders, usually first prepaid fuel costs, high-speed tolls, according to statistics, these rigid spending accounts for about 50% to 70% of total costs. In addition a large number of logistics companies can not timely payment of accounts receivable, long cycle funds used, the characteristics of accounts receivable will be analyzed in detail below. Overall, the logistics industry is a capital-intensive industry, the development is to rely on the support funds.
(B) a large number of accounts receivable
Shipping time difference in the actual costs recovery and trade activities in the logistics industry, due to changes in supply and demand, market competition is growing logistics industry, credit and deferred payment is more prevalent. Between shippers and logistics companies freight settlement cycles are getting longer, 60 days ninety days settlement industry has become the rule, there are usually 3 to 4 months of settlement of accounts between logistics companies and shippers, more brutal the reality is that in six months to clearing freight business everywhere. In order to maintain normal operations, the logistics company must bear the pressure Loaning, most of the logistics company engaged in logistics activities should the need to advance the huge logistics costs and related management fees, generated a lot of logistics and accounts receivable.
(C) the financing needs stronger
Based on the above characteristics capital-intensive and accounts receivable, the logistics industry has a strong financing needs, because even in the financial statements is profitable, but the logistics company's cash flow is negative. Due to the settlement account of the longer logistics industry in three to six months time, had insufficient working capital to capital chain logistics enterprises more easily unstable situation. According to statistics, about 75% of the logistics enterprises have financing needs.
(D) the traditional financing more difficult
Due to the small body mass logistics enterprises, asset-light, low credit and other characteristics, can not meet traditional lending requirements of financial institutions, logistics companies wishing to obtain adequate financing from traditional financial institutions have greater difficulties. The main reason is that financial institutions generally do not issue credit loans need collateral. The company's main asset is the logistics transport vehicles, logistics companies are mostly purchased under finance leases, hire purchase and other forms of vehicles, have not attained full right to dispose of the vehicle, or the bank does not accept transport vehicles as collateral. Logistics lack of collateral, the bank is difficult to obtain working capital loans; and private background of logistics enterprises, lack of good credit and the larger scale of the Group as collateral; thus resulting in a background of private logistics enterprises difficult to obtain long-term loans from financial institutions; and then traditional financial institutions lead to higher overall funding costs.
Second, the business of factoring the logistics industry as a new means of financing
Supply chain finance industry is developing rapidly, factoring as a major product supply chain finance has become a hot investment and financial development of the enterprise. In the supply chain, finance, supply chain, business factoring as the most common solution can be used as a new means of financing, to promote the development of supply chain finance to provide a stable long-term positive effect.
What (a) business factoring that?
So what is it the business of factoring, business factoring means that the seller will be based on the underlying transaction under the contract entered into with the buyer of its existing and future receivables transferred to the factoring business by factoring business to provide receivables receivable financing, accounts receivable management and collection of accounts receivable, credit risk guarantees one or more of a comprehensive business services.
(B) the business of factoring transaction structure
In terms of the transaction structure, commercial security reasons buyer (debtor receivables), the seller (factoring applicant) and Factoring three main common components.
Developments (three) Business Factoring
Factoring business has unique advantages in supporting the financing of small and medium private enterprises, has been the strong support of national policy and market recognition. As of December 31, 2018, the country has registered commercial factoring corporate enterprises and branch offices a total of 11,541 homes (excluding already written off 436 enterprises, 57 enterprises have been revoked), a total registered capital of more than 8,030 billion yuan. China's 31 provinces (municipalities and autonomous regions) have set up a factoring business enterprises and branch offices. According to statistics, six years of commercial enterprises have accumulated to provide factoring accounts receivable financing amounted to 3 trillion yuan, the number of SMEs more than 3 million. Only in 2018 will provide financing to SMEs 1.2 trillion yuan, up 1.2 million SMEs benefited. Visible, the degree of market awareness and attention factoring industry has been significantly improved.
At the policy level, factoring into the strong regulatory era. October 31, 2019, silver China Insurance Regulatory Commission officially issued "on the strengthening of supervision and management of commercial factoring business notice" (the industry calls "the text No. 205"), from a compliance operation, strengthen supervision and management, and steadily push forward the classification disposal , strictly control market access, compaction regulatory responsibilities and optimize the business environment and other aspects of the six national business factoring industry made more specific regulatory requirements. The Bank Insurance Regulatory Commission issued the text No. 205, the national commercial factoring industry made more specific regulatory requirements for the healthy development of commercial factoring industry is a major benefit
Third, the logistics industry supply chain docking advantage of factoring business
Management advantages
Based on the commercial advantages of factoring financing, as well as to carry out analysis of the logistics supply chain finance industry above, is not difficult to see that, for the logistics industry, the use of industrial advantages, carry out industrial chain factoring financing is a rare path. Logistics companies can integrate through commercial factoring company industrial chain advantage to combine based on real transaction background of the real economy and financial services, docking and integration of the logistics industry, business flow, logistics, information flow, capital flow and human resources to achieve financing purpose, and to promote their own development.
The logistics industry to carry out the business of factoring business has the following advantages:
(A) address the financing needs
As we all know, Factor according to the seller's demand for funds, after receiving the transfer of accounts receivable, and immediately provide financing to the seller, the seller help solve the liquidity shortage. According to the seller can also be requested to provide regular recovery of overdue receivable aging analysis of accounts receivable and other sellers to send all kinds of statements, to assist the seller sales management, logistics industry, there is a big factoring business space for development. In addition, according to financial factoring business needs of enterprises around the logistics industry, "short, small, frequent, urgent" feature, the logistics industry as the core subject of accounts receivable, provides a full range of financial services for logistics companies, logistics break enterprise financing difficulty and high cost of financing problems.
(B) the presence of the logistics industry and fit factoring industry
1, the logistics industry and agriculture, the bulk trade, machinery manufacturing and other industries, there will be a link, the market contains forward to supply chain finance, business opportunities huge amount of factoring financing;
2, the logistics industry has long been in-depth use of electronic information systems for enterprise management, high degree of data granularity, accounts receivable and the underlying transactions can be traced back, verifiable, evidence may exist, the majority of logistics enterprises have been established and in-depth use of electronic information enterprise systems management;
3, the logistics industry accounts receivable have the following characteristics, facilitate business Factoring Business: Accounts Receivable account of mismatch before and after; before and after the wrong amount of accounts receivable with; accounts receivable retention effect significantly; Accounts Receivable paragraph payment ability to concentrate; accounts receivable relatively standardized, system flow significantly, can be traced back; in close connection with business accounts receivable; accounts receivable management costs are relatively large; part of the accounts receivable risk is relatively concentrated.
There Based on the above fit, the logistics industry many opportunities for business factoring financing business, the smaller the operation more difficult, easy to be recognized factoring providers.
(C) factoring financing to meet the needs of business laws of the logistics industry funds
Business factoring financing is different from other financing methods. Capital requirements law in general commercial accounts receivable factoring products are for the procurement section is formed between the accounts receivable formed between logistics companies and customers, as well as the implementation of corporate procurement and logistics business and design, and logistics industry to adapt and can be recycled, help to accelerate the pace of development of logistics enterprises, to solve cash flow problems. Logistics enterprises to adopt business factoring financing will effectively resolve the logistics industry, their own weaknesses.
1, business factoring in a flexible manner, adaptable:
Logistics industry the flexibility to choose factoring business cycle factoring, directed factoring, reverse factoring, double factoring, factoring and other procurement execution mode, you can also manage online sales ledger, accounts receivable, providing customers with a cumulative business credit, compared with other financing methods, products are more diverse, more flexible way, more easy to operate.
2, business factoring factoring products can be tailored for the logistics industry:
General business factoring company can according to the preferences and characteristics of logistics enterprises, implementation of corporate procurement, tailored factoring products through various combinations of products to meet the logistics enterprises to maximize the purchasing needs of the implementation of the enterprise.
First, breaking logistics companies arrived (pledged) the limited warranty. And issuer credit rating of the traditional financing methods commonly used in different commercial risk considerations factoring financing target for the logistics business, logistics customers (accounts payable person), financing and accounts receivable related to the size of freight, logistics companies to break through the mortgage (pledge ) charge limit guarantees.
Secondly, posted a cash flow characteristics of logistics enterprises, logistics companies to match the needs of law funds. Bank liquidity loans more than 1 year, multi-project loan of 3 to 5 years, and basically do not do a single small amount of funds business. The factoring business more fitting logistics company cash flow "short, small, frequent, urgent" characteristics, factoring period subdivided into a month, two months and three months, and can be recycled, matching logistics enterprises law of demand funds.
Third, the accumulation of customers commercial credit, enhance business stability. Business factoring financing allows logistics companies to manage online sales ledger and accounts receivable, the cumulative customers commercial credit, credit to realize the sharing of resources, enhance business stability.
Logistics is running the country's economic engine, high-speed logistics companies operating funds is fuel, so the logistics industry should be sought from a variety of financing instruments to ensure the development of commercial factoring business, we believe the business is factoring accounts receivable logistics enterprises as the core subject can provide logistics for small and medium enterprises full range of financial services to small and medium logistics crack the high cost of financing business financing problem, help development of logistics enterprises.
