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Trade Finance Company Relieves Cash Flow Pressure for SMEs in China

October 19, 2011

China Business News

Ji Chen

缓解中小贸易型企业现金流压力境外贸易融资机构对接在华业务

At the recent Summer Davos Forum, the survival of Chinese SMEs was still a hot topic. The tightened monetary policy still has no sign of loosening during the second half of the year, making cash flow a matter of survival for Chinese SMEs as their businesses heavily rely on bank loans.

In light of this, there has been an increasing request for finance innovation. Mr. Andrew Tananbaum, Executive Chairman of CBC (Capital Business Credit, LLC), an international trade finance services provider based in the United States, told China Business News that CBC has paid close attention to the significant financing needs of the large number of Chinese SMEs.. In the past two years, CBC’s financing services have helped resolve the financing pressure between Chinese-based exporters and the U.S. importers.

“Globalization, and the lengthening of the international supply chain has created challenges in customer credit and working capital for many importers and exporters. The current uncertain global financial environment further aggravates these problems,” said  Andrew Tananbaum. “CBC’s financing model is designed to relieve the pressure on cash flow between China exporters and U.S. importers. “

Another roadblock Chinese SMEs face is the high interest rates associated with borrowing from a local bank. Commercial bank’s facilities are tightened by the Central Bank. This, combined with the huge financing demands of SMEs, has resulted in private, unregulated lenders offering high interest rates. It is easy for state-owned enterprises and government entities to borrow from commercial banks at quite low rates. Contrarily, SMEs, who heavily rely on the non-regulated financing market, have to bear an extremely high lending rate which can reach approximately 10% per month in some areas of Zhejiang Province.

“In the China export industry, the U.S. buyers are in a good position to get credit terms of 90 days or even 180 days because they have more bargaining power,” said an overseas export sales manager of a domestic manufacturing enterprise. ”This is immaterial when the economy was good. However, when the U.S. is weakening, China exporters are facing cash flow liquidity issues. In order to avoid the risk of bad debts, some Chinese exporters are asking U.S. credit companies to investigate their buyer’s credit, or they are even asking their buyers to share the costs of payment guarantee,“ the sales manager concluded.

Chinese customs statistics show that import and export volume hit $ 318.77 billion in July 2011 with a 21.5% growth. Although the export increase with U.S. slowed, it still reached U.S. $ 29.96 billion, and China was ranked as the number one U.S. trade partner.

During the 2008 financial crisis, lots of American companies shut down or defaulted. This resulted in a large amount of overdue and bad debts to China exporters. This makes Chinese exporters very wary moving forward as they are concerned that history will repeat itself.

Mr. Patrick Ho, CBC Asia Regional Manager & Executive Vice President, commented that CBC has received a lot of inquiries about financing and insuring exporters’ business as CBC’s solutions ensure that Chinese exporters immediately receive 100 percent payment after shipment and U.S. importers still obtain up to 120 days credit. “This helps to reduce trade risk like credit and currency exchange rates etc.,” Ho concluded.

缓解中小贸易型企业现金流压力境外贸易融资机构对接在华业务

嵇晨, 第一财经

刚刚闭幕的第五届夏季达沃斯论坛上,我国中小企业的生存难,依然是热议的话题之一。进入下半年,在国内货币政策收紧局面尚无松动迹象的形势下,对于大量依赖银行贷款的中小企业来说,生死攸关依然悬牵“可怜的”现金流。

在日益高涨的金融创新呼声中,来自美国的国际贸易融资服务供应商CBC(Capital Business Credit)行政主席安德鲁·塔南博(Andrew Tananbaum)在接受《第一财经日报》记者专访时表示,这两年已经关注到大量中国中小型企业面临融资需求,希望可以通过提供规范的融资服务,缓解中国出口企业和美国进口商之间的资金链压力。

“经济全球化步伐的加快,导致世界经济一体化的供应链环节越来越长,对很多进口商和出口商的客户信贷以及运营资金产生了很大挑战,而当前全球金融环境的不确定性,使得贸易经济面临的挑战更加激烈。”安德鲁·塔南博表示,CBC的商业模式就是基于释放和缓解出口商和进口商的资金链压力。

众所周知,目前,商业银行信贷资源有限,民间利率受市场供求趋高,国有企业和政府在体制内融资成本极低,而依靠民间信贷生存的民营中小企业却不得不忍受极高的借贷利率,浙江某些地区的民间融资月化利率甚至高达10分。

“在出口贸易行业,美国客户是最‘大牌’的,获得赊账交易的几率比较高,账期一般为90天,最长可能达到180天。”一位国内制造出口企业海外销售经理对本报记者表示。

“经济好的时候,这不算什么,但当前,美国经济疲软有目共睹,中方出口企业也面临着流动性资金链的压力,同时为了规避其中的坏账风险,有的中方出口企业会要求美国当地的信用担保公司进行资信调查,甚至希望其能介入金融担保,哪怕和出口商协商共同支付产生的担保费用。”他称。

中国海关最近数据统计显示,2011年7月贸易进出口总值3187.7亿美元,同比增长21.5%,其中,尽管对美国出口总值增速有所放缓,但7月中国对美国出口总值达到299.6亿美元,仍然排列各国出口之首。

回顾2008年美国次贷危机爆发之时,大量美国公司倒闭,使国内不少贸易出口商都吃了哑巴亏,拖欠账款很难收回;而今,美国经济的疲软,更严峻的是,中国出口企业也遭遇极度紧张的资金流挑战,几乎所有人都很担心历史会重演,也期盼着能有解决方法。

据CBC亚洲区域经理、行政副总裁何沛雄(Patrick Ho)透露,公司承接了很多来自中国出口商的融资担保咨询业务,一方面可以确保中国出口商100%出货后立即支付全款,也可以帮助美国进口商获得最长达120天的信用期。“这也有利于降低赊账付款、汇率等多方面贸易风险。”