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Supply chain finance model of domestic automobile industry
Supply chain finance model of domestic automobile industry

Nowadays, the automobile manufacturing industry in China is developing rapidly. From the perspective of industry scale, the proportion of automobile enterprises and assets in the national industry has increased year by year. The following is the supply chain financial model of domestic automobile industry that I share with you. Please click to view. First, the supply chain finance of the automobile industry

(A), the concept of supply chain finance

Supply chain finance refers to a financing mode in which banks manage the information flow, capital flow and logistics of upstream and downstream SMEs around core enterprises, and connect them through core enterprises to provide financial products and services. Supply chain finance in automobile industry is a typical supply chain finance model.

(B), the development and advantages of supply chain finance

Since 200 1, Chinese banks have started to pilot supply chain finance business, which has developed rapidly and gradually spread because it can effectively solve the financing problem of small and medium-sized enterprises and extend banking services. Due to the strength of core enterprises, credit sales account for a large proportion in supply chain settlement, resulting in a large number of accounts receivable, making small and medium-sized enterprises face the difficulty of tight capital chain. Supply chain finance provides a solution to the concept of financing for SMEs. At the same time, as a result of providing a package of financial services, core enterprises are bound to provide services to "banks" and strengthen customer relations.

Second, the automotive industry supply chain financial model analysis

(A), the upstream of the industrial chain of financial services model

Automobile parts and accessories manufacturers, that is, the upstream of the automobile industry chain, need to buy raw materials and equipment for production, which accounts for a large proportion of the whole production cost. At the same time, in order to improve the competitiveness of products, these enterprises also need to increase research and development efforts and improve technology. However, due to the weak bargaining power of automobile manufacturers, the payment cycle is longer, mostly more than three months. Upstream accounts payable, downstream accounts receivable and inventory often affect the cash flow of enterprises, so financing is needed to supplement the normal turnover of working capital.

1, factoring. Factoring means that under the condition of credit payment, the bank transfers the accounts receivable of the auto parts supplier to the factor according to the goods sales contract between the automobile manufacturer and the parts supplier, and the factor provides services including trade financing, sales ledger management, bad debt guarantee and so on. This financing method can solve some liquidity needs for suppliers, improve financial statements, ensure payment, and help manufacturers strive for more favorable payment terms and accelerate development.

2. Discount on commercial tickets. Discounting commercial bills means that banks promise to discount commercial acceptance bills held by parts suppliers and accepted by automobile manufacturers within the pre-approved discount quota. This financing method can enhance the liquidity of commercial bills, help parts suppliers to obtain funds quickly, improve the efficiency of capital use and reduce the capital occupation of bills receivable.

3. Inventory pledge financing. Inventory pledge is based on the cooperative relationship between core manufacturers (raw material suppliers) and distributors (auto parts suppliers). The dealer pays the supplier through bank financing and mortgages the purchased goods to the bank. Pledged goods are kept by a third-party regulatory agency, and the bank gradually releases the pledged goods according to the dealer's sales payment progress.

4. Order financing. Order financing refers to the short-term financing provided by the bank to meet the demand of raw material procurement, production and transportation of the order after the buyer and the seller sign the order contract, based on the real and effective contract background, with the expected payment under the order as the main repayment source. The credit types of this financing are diversified, including working capital loans and opening bank acceptance bills.

5. Pledge of accounts receivable. For parts suppliers, due to the strong position of their downstream automobile manufacturers, a large number of accounts receivable are generated. Banks can review and evaluate the accounts receivable that have occurred, register the accounts receivable pledge after confirming that they can be financed, and open the accounts receivable pledge financing to ensure that the payment of the automobile manufacturers is the source of repayment. Well-known automobile manufacturers have strong performance ability, banks can control the risks of such financing, and enterprises can revitalize accounts receivable and strengthen the liquidity of funds.

(B), the upstream of the industrial chain of financial services model

Due to the strong position and good overall credit of well-known automobile manufacturers in the industry, most banks will give them a certain amount of credit, such as project loans, medium and long-term loans, bank acceptance bills, etc. Enterprises themselves will also improve financial statements, optimize debt structure and reduce financial costs through settlement.

At the same time, in order to meet the business and financial management needs of customers' automobile manufacturing enterprises, banks will provide them with a series of trade financing and settlement services, and rely on the online banking system and fund settlement system to centrally manage enterprise funds, effectively control the risk of funds and realize the convenience of receipt and payment.

(C), the downstream of the industrial chain of financial services model

Downstream of automobile industry chain, specialty stores and dealers. It is greatly restricted by automobile manufacturers and its bargaining power is also weak. Generally, they have to pay most or all of the payment, plus a part of the inventory, which requires a lot of money, which makes their financing needs more intense.

1, inventory pledge financing. The same as the upstream inventory pledge financing mode, the inventory owned by automobile dealers is pledged to the bank, at the same time, the pledge is kept by a third-party regulatory agency, and the bank gives credit, and the pledge is gradually released according to the sales return.

2. Pledge of automobile certificate. Due to the large inventory of downstream dealers and franchise stores, vehicle pledge will take up more manpower and material resources, and banks can pledge their own automobile certificates to provide financial services to downstream enterprises more conveniently and quickly.

The company account is overdrawn. According to the application of downstream dealers, banks are allowed to overdraw within the limit within the prescribed time limit on the basis of the approved account overdraft limit. This kind of financing is mostly temporary credit facilities to meet the settlement needs.

4. Manufacturer's silver. Banks sign tripartite agreements with car dealers and car manufacturers. Banks provide financial support to automobile dealers, and automobile dealers issue bank acceptance bills to automobile manufacturers. Upon receipt, the manufacturer sends the goods to the third-party supervision company, and the bill of lading or warehouse receipt is handed over to the bank. After the dealer pays the amount or pays the deposit, the regulatory agency delivers the goods.

5. Repurchase guarantee. Banks provide credit support to buyers (car dealers) to help them buy products. At the same time, car manufacturers promise that if dealers can't repay the bank debts in time, they need to buy back the products and return the money to the bank. This kind of financing takes repurchase as a conditional guarantee and is widely used at present. Because manufacturers are risky, they usually choose the right buyers.

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