General

The rapid development of financial technology has brought opportunities for breakthroughs in the international factoring business. At the "Commercial Factoring and Supply Chain Finance Public Welfare Lecture" recently hosted by Guangdong Commercial Factoring Association, Guangzhou Commercial Factoring Industry Association, and Shenzhen Commercial Factoring Association, Gan Jianxiong, head of Incomlend China, a Singapore-based financial technology company A lecture titled "Analysis of Import and Export Factoring Fintech" was given.

In Gan Jianxiong's view, the main financial products in import and export trade are bank loans, letters of credit, export credit insurance, export factoring, etc. In international trade, many buyers are not Fortune 500 companies, which involves international factoring How can institutions figure out the problem of buyer's credit, and then they have to answer two questions: Is the factoring company willing to handle the factoring business for a company? How much to give?

Gan Jianxiong's company mainly refers to the insurance institutions in developed countries in Europe and the United States to evaluate and give quotas for local enterprises. Behind this, it is necessary to use the country's company financial reports and import and export data. Taking the United Kingdom as an example, ordinary people can easily inquire about a company's financial report, import and export data and other information. "When I log in to an insurance system, I can check the insurance amount of a foreign company, which means that when a foreign trade company and a foreign company encounter risks in doing business, they can get insurance compensation. Therefore, our company also judges whether it can be a foreign company. When the buyer handles the factoring business, the amount that can be given has a reference value, and it will not be a subjective figure." Gan Jianxiong said, "This factoring business is mainly aimed at buyer enterprises in developed countries. If the buyer is in the Africa can't do it."

Next, we need to figure out why companies involved in international trade are willing to handle international factoring business. "Exporters sometimes do not dare to take orders when they encounter an order. The biggest role of international factoring is to solve this problem. After handling international factoring business, Chinese exporters can get 90% of the payment for the products after they are shipped, so that they can be more Take orders with confidence and expand sales.” Gan Jianxiong said, for example, some domestic products are exported to foreign supermarkets with a billing period, and some products are consignment type, and the products are sold in foreign supermarkets for three months and then paid to Domestic enterprises. In this case, after the international factoring business is handled, the sales volume can be expanded through factoring, and the contradiction between the two parties in the international trade whether to pay cash or deferred payment can be resolved.

Gan Jianxiong once visited a well-known foreign company and its only authorized manufacturer in China. The manufacturer has 6,000 employees, and the cost of wages and production is very large. Although foreign buyers are high-quality, they usually place orders eight months in advance. Manufacturers After producing the product, the payment for the goods was received eight months later. When the price of raw materials rose, there was a lot of pressure. After the international factoring business, the financial pressure was significantly reduced.

Gan Jianxiong observed in the business that domestic importers also have a strong demand for factoring. In import practice, large domestic buyers want to have an account period, and foreign sellers are unwilling to give an account period, so the two sides cannot reach an agreement. At this time, intermediate traders and international factoring who have advanced funds and entered the market can play a role in matching transactions. "Import traders are not sensitive to factoring fees because imports are lucrative."

In this process, you can see the role of fintech. In addition to the system mentioned above, which can easily check the buyer's insurance limit, the approval of international factoring, the upload of invoices by international trade sellers, and the advance of 90% of the payment can be completed online. Gan Jianxiong said that due to the online approval process, the workload of risk control is small, so there is no need to make large orders like traditional financial institutions in the past. With the support of fintech, even small orders with an amount of only a few thousand dollars can be carried out.

Gan Jianxiong said that companies in some parts of the country are still relatively unfamiliar with international factoring. International factoring has great market potential in China, but it still needs publicity and promotion. "Unfortunately, we can't contact customers directly in China. Direct visits may be blocked by security guards, and calls may be blocked by the front desk. Therefore, we should rely more on the support of powerful local enterprises and institutions. The introduction will be smoother." Gan Jianxiong said with emotion, this is different from foreign countries, because factoring business is more common in developed countries, sending emails to unfamiliar companies abroad will usually receive a reply, and making calls will also be smoother.