The executive meeting of the state council held on March 31 explicitly mentioned encouraging the development of supply chain financial products such as orders, warehouse receipts and receivables financing, so as to promote the annual receivables financing of small, medium and micro enterprises to 800 billion yuan.

Accounts receivable management is one of the main businesses of commercial factoring enterprises. After development in recent years, as an important tool and carrier of supply chain finance, commercial factoring has played a unique role in helping enterprises at all levels of the supply chain to solve their financial difficulties and support the development of small, medium and micro enterprises.

Since the outbreak of COVID 19, commercial factoring enterprises have taken active measures to optimize financing services and fully support the resumption of work and production of small, medium and micro enterprises. In order to effectively cope with the possible development pressure caused by the epidemic, the important role of commercial factoring in the adverse economic cycle should be given full play by integrating the macro environment, policy orientation, factoring services and technical means, which can not only provide support for the development of small and micro enterprises, but also provide an opportunity for the steady development of commercial factoring enterprises.

Seize policy opportunities to help resume production

Under the background of comprehensive resumption of work and production, relevant departments have issued policies to increase the financial support for smes in the industrial chain.

In the notice on strengthening industrial chain coordination to resume production and production (hereinafter referred to as the notice) issued by the bank insurance regulatory commission, six specific measures are proposed to further strengthen the financial services to the real economy and promote industrial chain coordination to resume production and production. In addition, the ministry of industry and information technology released the notice on the response to covid-19 epidemic situation to help small and medium-sized enterprises recover from the crisis, which also emphasized that it actively promoted the use of supply chain finance, commercial factoring, receivables pledge, intellectual property pledge and other financing methods to expand the financing supply to small and medium-sized enterprises.

It is noteworthy that recently, the local financial supervision administration of shenzhen issued a notice encouraging commercial factoring companies within its jurisdiction to increase financial support to customers affected by the epidemic. At the same time, under the premise that the risk is controllable and the underlying investors can penetrate, commercial factoring companies can raise funds through the qianhai financial assets exchange with the approval of the audit. In addition, the Beijing local financial supervision and administration in early April also issued "to encourage the local financial organization support to return to work and production measures to strengthen service entity economy", which also mentioned "for stable operation, good regulation index and actively support the return to work and production of financial leasing companies, commercial factoring companies, in under the premise of risk control, the underlying investors can penetrate, after agreed by Beijing financial regulator, financing by Beijing financial assets exchange."

Yueda institutes of factoring analysis, due to the change of external environment, commercial factoring companies need careful analysis, put money into to the realm of social development and policy support, through various channels to return to work for the enterprise and production solutions for difficult problem, especially the support of medical supplies, transportation, construction and basic life safeguard production industry development.

Industry experts told the financial times reporter, broaden the financing channels of commercial factoring company, help it expand business scale, the preferential policy to the service of small and medium-sized enterprise customers, but also need to see that applies to broaden the financing channels of commercial factoring company policies, the regulatory indicators also have clear requirements, overall, more heavily regulated commercial factoring industry trend has not changed.

Take advantage of factoring to enhance supply chain services

In the face of changes in the internal and external environment and different service industries, factoring companies, while effectively controlling risks, need to give play to the advantages of factoring services, innovate business models, increase services to enterprises in the supply chain, and help prevent and control the epidemic and resume production.

According to incomplete statistics, since the outbreak, guangdong commercial factoring companies have provided more than 1.8 billion yuan in financial support and offered preferential services such as service fee exemption and handling fee exemption, according to data released by the guangdong commercial factoring association.

The financial times understands that guoxin commercial factoring co., LTD., a subsidiary of guoxin capital, has used its business advantages to establish a green service channel for financing, and has invested 400 million yuan in factoring financing for central enterprises through innovative products such as "guoxin epidemic insurance" and "guoxin epidemic certificate".

Since the platform resumed operation after the Spring Festival, China railway construction commercial factoring co., ltd. has provided factoring services to nearly 100 suppliers in hubei province, providing a total of nearly 80 million yuan of financial support, with a total financing loan scale of more than 1.6 billion yuan, and launched differentiated financing interest rate policies for customers in regions more affected by the epidemic.

In addition, some commercial factoring companies also use the capital market to issue a special plan for epidemic prevention and control and asset support, and raise funds to support the resumption of work and production of small and medium-sized enterprises in the supply chain.

For example, in early April, guoxin commercial factoring co., ltd. issued the "guoxin factoring -- asset support plan no. 2 (epidemic prevention and control) for supply chain reform and supply chain reform of the central enterprise of Shanghai axa capital management co., LTD.", with the issuance scale of 1.913 billion yuan. According to the introduction, the issue of funds raised will be used in priority to support the central enterprises in hubei customers comprehensive resumption of production, to strengthen the supply chain of central enterprises upstream and downstream services. At present, the power construction factoring company has contacted some member enterprises participating in the construction of epidemic prevention and control projects such as the square cabin hospital, Raytheon mountain and vulcan mountain hospital, and provided them with special financing support.

Improve the level of technology to promote the transformation of factoring business

In the past two years, with the gradual definition of the regulatory pattern and important progress in the legislation of commercial factoring, China's commercial factoring industry is in an important period of transformation and development. It has become a common task for commercial factoring companies to seek innovative transformation due to the impact of recent covid-19 epidemic.

Fintech could be one of the drivers of accelerated transformation in commercial factoring. Han jiaping, director of the commercial factoring committee of the China service trade association, said that accelerating the transformation to service, technology and synergy, and further enhancing the service to the private economy and small and medium-sized enterprises will be the future development direction of the commercial factoring industry.

The notice also mentions "upgrading the technology level of industrial chain financial services". Banking financial institutions are encouraged to develop supply chain business systems and provide enterprises with convenient and efficient supply chain financing services by combining online and offline approaches.

Industry insiders believe that the outbreak may pose a certain challenge to the liquidation of accounts receivable under factoring. During the epidemic period, in order to prevent the spread of the epidemic caused by population movement and aggregation, online business system, supply chain platform, receivables circulation platform and other network forms can provide guarantee for the orderly business development of commercial factoring companies.

With the development of science and technology, whether it is the multi-layer penetration of traditional supply chain finance with the help of block chain technology, or the identification and connection of high-quality enterprises with high-quality financial resources with the help of artificial intelligence and big data technology, supply chain finance is supporting the development of small, medium and micro enterprises in different scenarios in a more diversified and innovative form.

Some commercial factoring companies attach importance to and increase the capacity building of science and technology. The financial times, the reporter understands, the new factoring information technology companies with a third party to launch the digital technology company, to build SaaS, platform of digital technology can assign a platform, to provide financial services platform, the integration of supply chain based on the block chain to improve supply chain efficiency and quality financial services, better power entity industry development.

Source: sina finance and economics