US Flag City Launches SME Financing And Market Expansion Solution

The seventh China International

This issue is a special problem for small and medium-sized enterprises, which has aroused wide concern from all walks of life.

Foshan Municipal People's government, China logistics and purchasing Federation, Sinop Changhang group, Shenzhen Development Bank Foshan branch, China International Small and medium enterprises

The experts and scholars from the conference point out suggestions on financing and market expansion from the perspective of modern logistics, supply chain financing and independent circulation channels.

Xie Bingzhen, chairman of the strategic decision Committee of China National Flag holding group, launched the SME financing and market expansion solution at the briefing session, which aroused enthusiastic response from the participants.

China's national flag investment and construction of the ten major international procurement and regional logistics center (abbreviation: American flag city), to create the world's leading producer service trade platform, to provide international business.

Xie Bingzhen pointed out that SMEs contributed 60% of China's GDP, 50% of tax revenue and 80% of urban employment, but the development of SMEs also faced a series of problems, such as high financing costs, difficult market expansion, and heavy operating costs.

The "non fare increase" mode implemented by the United States flag city is a comprehensive solution for SME financing and market development.

The international purchasing and regional logistics center (West Coast City) is one of the ten major bases in China's national flag layout.

The project is located in Jinjiang, the brand capital of China. It covers a total area of 3000 mu, and builds 30 thousand international procurement trading seats and about 100000 square meters of large-scale international convention and exhibition centers.

The first phase of the project, 4000 trading seats, has started global selection for textile and clothing, shoe auxiliary materials, basic building materials and decorative materials.

The Pearl River Delta international procurement and regional logistics center (hereinafter referred to as the flag city of Pearl River Delta) has settled in Shunde District, Foshan City, Guangdong province.

The project covers an area of 3500 mu, with a total investment of US $2 billion 800 million. The first phase will build a permanent exchange seat of 1 million square meters. It will provide more than 10000 large booths for the Pearl River Delta Industry: home appliances, electronics, building materials, textile and clothing, shoes and hats, bags, hardware, electrical and mechanical industries.

After the completion of the project, there will be a total of more than 30 thousand seats and the annual turnover will exceed 300 billion yuan.

At the briefing, Xie Bingzhen, chairman of the strategic decision Committee of China's US flag, made the following full explanations for the theoretical research and practical operation of the "non fare increase" mode.

20 years rent free to solve the worries of market expansion

With the process of urbanization in China, the rent has risen 10 times over the past ten years, the better the business, the faster the rent is rising. Taking the standard business place of Yiwu small commodity market as an example, the rent accounts for 25%-36% of the merchant's operating cost, and the two pfer is to raise the business fee 20%.

"Choosing a good store site and fostering popularity is a very difficult task."

However, business is good, rents are also rising, and the biggest beneficiaries are owners.

This is the common worry of all leasing operators.

The 20 year rent free of "American flag city" has completely broken the commercial "iron rule" that rents are rising.

The "20 years" is only the maximum time limit stipulated by the law. The trading seats of the flag city are permanently rent free. Regardless of the stage of appreciation of the property, the merchants will share all the interests of the growth of the business circle. This highlights the superiority of the "non price increase" mode adopted by the flag city to support the growth of the entry merchants.

{page_break}

Three times credit from its own capital to open up a new prospect for corporate finance.

In addition to 20 years' free rent, the United States flag city has a policy of "providing three times its own capital credit to enterprises", which will change the financing pattern of Chinese enterprises.

As we all know, the criteria for selecting credit objects are strict.

The credit below the benchmark interest rate is basically not done, and the credit interest rate of SMEs is generally floating 10% - 40%.

China's small and medium enterprises which have not completed the primitive accumulation and are eager to develop are generally lack of credit. They are the groups that need credit support most. According to statistics, the proportion of commercial banks refusing to lend is as high as 56.1%.

Capital markets are often not available to them.

In order to secure their own credit, commercial banks take the idea of "helping the good and restricting the bad, and robbing the big and letting the small ones" as the management ideas.

Moreover, the management level of SMEs needs to be improved. Commercial banks need more supervision and supervision on their loans, and the cost and risk of management increase accordingly.

All these formed the situation of financing difficulties and lack of credit for small and medium-sized enterprises.

Credit matching is the most scarce resource for small and medium-sized enterprises.

Although bank credit interest rates rise 10% - 40%, there is still a shortage of supply, let alone the hardships of private lending channels.

On the basis of huge property assets, American flag city will replace hundreds of billions of credits of banks and set up a common credit platform of the United States flag city. It will provide three times the credit limit of its own funds to settle enterprises, and solve the problem of insufficient credit in the operation of enterprises. This will be Kang Zhuangda's way out for the financing of enterprises.

Obtaining credit in American flag city is implemented in the credit finance management framework of the supply chain. The process is relatively convenient. Only by opening a bank in charge of the flag city settlement business and deposit a credit deposit, it can get a credit line of three times the enterprise's own capital and trade with credit.

What is more unthinkable is that it won't pay interest to obtain three times of its own capital in the US flag city.

If the credit is more than three times the amount of the credit, the interest of more than three times will be much lower than the bank credit standard.

Therefore, apart from trading seats without rent, the spread of financing in American flag city can also save a lot of expenses for enterprises.

The credit finance management of supply chain implemented by the United States flag city has made rigorous precautions against risks, and the financial settlement business of enterprises has been returned to the bank. Logistics is distributed by Sinop, or regulated by Sinop. In the process of using credit pactions and logistics supervision, no one can touch money or change the flow of goods.

Only when the final settlement is completed, the bank enters the accounts receivable and the earned profits into the respective accounts, and the credit paction process is over, so that cash can be approached.

Therefore, this mode makes the operation of enterprises not limited by the lack of credit, so long as honesty and business opportunities exist, there is no lack of credit.

The implementation of credit pactions can not only increase business, reduce financial costs, but also eliminate the emergence of triangle debts and completely change the original financing pattern of enterprises.

This once again highlights the superiority of the United States flag city in the implementation of the "non fare increase" mode to support the growth of the entry merchants.

Efficient e-commerce, control of global business news

American flag city also provides e-commerce platform and information service system for merchants to communicate with the whole world.

China's regional economic disparity is large, and its sales potential is strong. But because of asymmetric information, it is difficult for commodities to cross regional circulation, so the life cycle is very short.

In today's globalisation, less than 2.5% of the companies that we can connect with the world in ocean trade are less than 20% of those who can cross provincial trade.

A commodity is declining in a regional market while in another region is at its peak.

Because of asymmetric information, enterprises can not expand new markets.

The electronic commerce platform of American flag city can enable the merchants to get rid of the passive information asymmetry, and with the realization of the national layout construction of the American flag City, the entry merchants can realize chain type national information communication and credit exchange, and complete the overall layout of the national circulation channels.

In addition to effectively solve the problem of asymmetric information.

The e-commerce system of American flag city is still a credit platform for e-commerce pactions.

According to the survey, 48.4% of Internet users in China think that online pactions can not guarantee product quality, after-sales service and factory credit; 26.9% of Internet users believe that online pactions are not safe, especially commodities, it is difficult to trust pactions that do not meet.

The chairman of China's US flag, Xie bin Zhen, asserted that credit guarantee would enable e-commerce to block pactions.

The electronic trading platform of American flag city is an effective extension and supplement of entity trading seats.

The city's huge financial credit solves the problem of insufficient credit in the existing electronic trading platform.

The whole process of paction is supervised by commercial banks and supervised by logistics providers.

With 100 billion credit guarantee, the p provincial, p regional and cross-border pactions are no longer out of reach. The city's e-commerce will become a convenient trading platform for international bulk procurement, because this platform is not virtual, but has strong physical credit as support.

At the same time, the enterprise resource management system ERP of American flag city can effectively help enterprises analyze sales data and market demand, and guide enterprises to make production plans, manage inventory and raw materials.

At the same time, the system is effectively integrated with the terminal's e-mall, forming the integration of ERP and e-commerce, such as sales, purchase and capital collection and payment, so as to ensure the organic unification of enterprise logistics, capital flow and information flow.

The United States flag City e-commerce system not only provides sufficient business opportunities for the entry enterprises, but also provides the most modern means for business opportunities and management.

A seat, leveraging global business opportunities

The whole name of "American flag city" is "international procurement and regional logistics center". It implements global investment and sets up an international special hall in the city of Qi banner. Its goal is: merchants gather the US flag and the world of domestic goods logistics.

The United States flag city will accept the international buyer's Commission, organize the international agency purchase, so that the resident can obtain the international bulk purchase order.

And provide a series of supporting services such as customs and commodity inspection.

Due to the impartiality of the management mode, the "flag city" will become the platform of the government's "sunshine procurement", with an annual purchase order of 1 billion, which is a business opportunity that the general commodity wholesale market can not get.

In the next ten years, the ten major bases of the national layout of the United States flag city have been started construction, and there are hundreds of billions of procurement needs, all of which are digested by merchants who have entered the city of American flag.

As long as there is production in the society, the supply chain can not be interrupted, and the industry supply chain as the layout of the American flag city determines that the credit paction in the supply chain of American flag city is endless.

Due to the huge scale of the US flag City, it can accommodate thirty thousand operators to enter, and the cost depressions will surely lead to the gathering of thousands of merchants. This will become a place of convergence of information, business opportunities and international procurement pactions.

The scale of pactions and the establishment of channels, a huge international mall with Chinese characteristics, will enable China's circulation industry to go to the world independently.

As long as merchants have a seat in the flag City, they can enjoy hundreds of millions of credit background support and global circulation channels.

It can act as an agent to sell international brands, and can produce and sell itself. In the era of channel and credit, the city of American flag will occupy the highland of circulation.

But in the face of the world, there are not many seats in the US flag city. Only those who are the first to enter are eligible to have a chain seat in the national layout of the United States flag, and realize the nationwide layout and international layout of the enterprise sales network in the circulation network built by the United States flag.

Reporter's notes:

The United States flag city has built up the lowest cost international trade platform for SMEs, including credit, information and channels.

The cost of depression, the aggregation of businessmen, will be like water.

US flag itself will profit from the third industry value-added services of scale, the larger the scale of services, the more profits.

For the merchants, the city is a near zero cost circulation channel; for the United States banner, the huge scale is the foundation of the profit of the value-added service; for the society, the "non price increase" model of the banner will challenge the backwardness of the traditional flow industry and realize the reform and innovation of the circulation industry with Chinese characteristics.

We expect that in the next ten years, the "flag city" in all parts of the country will flourish in the framework of the "non fare increase" mode, and will create the main channel for Chinese people to circulate.