Zhejiang Jinhua Huifeng Auto Parts Factory is a small enterprise born and bred in Jinhua. Its products are mainly supplied to Wanliyang Group. At the end of last year, the company had a temporary liquidity gap during the process of transformation and upgrading. As small businesses lack effective guarantees and collateral, it is difficult to get financing.
According to the person in charge of Jinhua Huifeng Auto Parts Factory, the forged parts are an important link in the industrial chain of the auto parts industry; and to improve the production process and product quality of the entire auto parts industry, these supporting small enterprises are required to carry out technological transformation and improve production. Ability and product quality, thereby enhancing the competitiveness of the entire industry chain. These supporting SMEs are fundamentally sound and have a certain foundation. Everyone also wants to carry out technological transformation and increase production capacity. However, after the company’s own capital accumulation has been invested in technological transformation, the liquidity funds are obviously insufficient and need to be funded by relevant parties. stand by.
“At that time, I just bought new equipment. The funds were really tight. I went around and asked about it. I was hitting a wall. Later, when I heard that my friend Chuzhou Chouzhou Commercial Bank launched a financing product designed for a small company like us, I went They tried it," said the person in charge of Huifeng Auto Parts Factory. "But this trial proved to be successful because our cooperative company is the Wanliyang Group, which meets the bank's newly developed '1+N' industrial chain loan standard. I am Within three days, a 5-million-yuan working capital loan was acquired, and the enterprise’s production was fully restored. According to the person in charge of the plant, companies like him still have a lot of loans to Chouzhou Commercial Bank to help them navigate smoothly. Difficulties.
"1+N" Industrial Chain Financing Helps Small Enterprises Upgrade
Zhejiang Chouzhou Commercial Bank Jinhua Branch Small Business Department
According to our investigation, the lead company of Jinhua Huifeng Auto Parts Factory is Wanliyang Group Co., Ltd. The company has strong capital strength, reasonable asset distribution, low asset-liability ratio and good growth; the external market environment of the company's industry is good, and local government policy support is strong; the company has high-quality customer resources, and with fixed The basic completion of asset construction and internal management are gradually in place. Its advantages in product R&D, technical equipment, production scale, and taxation policies will be fully realized. There are nearly 100 production and processing companies and individual industrial and commercial households supporting the processing of their group companies. Finally, we set the loan amount based on the sum of the accounts payable balance of the applicant plus the estimated increase in the accounts payable after the increase in equipment investment. The amount of the loan is capped by the total amount payable, and additional Wanliyang Group Limited The company guarantees that a series of supporting enterprises such as Jinhua Huifeng Auto Parts Factory will be loaned.
The “1+N†industrial chain loan is one of the innovative products introduced by Zhejiang Chouzhou Commercial Bank in order to meet the funding needs of SMEs. "1" is a leading large enterprise, and "N" is a variety of supporting enterprises in the upstream and downstream industry chains. The “1+N†industrial chain loan refers to providing financing to the upstream and downstream enterprises of the industrial chain as a whole, and extends the loans to its suppliers, manufacturers, distributors, retailers and end users around the leading enterprises in the industrial chain. . Prior to these supporting companies because of the small size and difficult loans. We pass innovative products. Leading companies provide guarantees to support companies in the industry chain.
In the Jinhua area, most small and medium-sized enterprises supporting the leading enterprises generally have to bear the 2-3 months of capital turnover of the leading enterprises. In addition, the small-scale enterprises, the urgent capital, and the lack of effective collateral also make them in the bank. It is difficult to lend money; for leading companies, due to the smaller scale of guarantees and the right to judge loans, the risk is minimized. The “1+N†industrial chain loan not only solves the funding needs of the supporting SMEs, but also ensures the supply of accessories for leading enterprises, which makes a “win-win-win†situation among enterprises and between banks and enterprises.
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