Innovating Trade Financing Mode &Nbsp; Enhancing Enterprise Financial Capability

As soon as the two sessions of Shenzhen are convened, the NPC deputies take the time to go deep into the enterprise investigation and study, and accelerate the pformation and upgrading to collect public opinion.

Yesterday, Zhong Hua and Shen Yongfang of the Municipal People's Congress visited some enterprises and chambers of Commerce in the foreign trade sector.

The traditional way of collecting money is out of line with the international market, resulting in the loss of orders.

Problem: payment method is out of line with international order.

A proposal made by Zhong Hua, a deputy to the Municipal People's Congress, to increase policy support and promote the pformation and upgrading of foreign trade, shows that China's manufacturing is still dominated by low-end consumer goods, and the manufacturing cost of products is hard to compress. But relatively speaking, the cost of financial services, logistics, customs, channels and other service links accounts for 30%-50%, and many small and medium-sized enterprises have spent a lot of manpower and material costs in the intermediate links.

Shen Yongfang, chairman of the Municipal People's Congress and President of the Shenzhen garment industry association, admitted that "now our clothing enterprises, especially small and medium-sized enterprises, have difficulty obtaining loans from banks even if there are letters of credit. Many enterprises are on the verge of bankruptcy, and entrepreneurs' confidence is seriously frustrated."

"From the 2008 financial crisis to the current European debt crisis, what are the practical problems faced by foreign trade enterprises in dealing with these external crises?" the question was raised by the NPC deputies at a Shenzhen Datong company. This question triggered a different reply by general manager Wei Qiang, "I do not think that the problems of foreign trade enterprises' survival are all in the external environment, and many times they are themselves."

Wei Qiang emphasized this point when he was talking with NPC deputies. He contacted with a large number of foreign trade enterprises. He obviously felt that many small and medium enterprises accepted the payment method which was out of line with the international market and could not cater for foreign customers.

Reporters learned that the current international market, especially the United States market credit payment is the trend of the times, more than 75% of the trade is achieved through credit payment.

Many foreign trade enterprises in Shenzhen are facing a situation that they dare not answer because of lack of financing channels. Many enterprises prefer to cash in on the price concessions.

The solution is to boost foreign trade enterprises with professional import and export service platform.

In his proposal, representative Zhong Hua said that it is very difficult to effectively solve this problem by means of government administrative means. We must encourage and support the development of socialized and market-oriented trade service institutions. With the help of micro market tools, we can achieve good results through the specialized import and export service platform.

In addition, Zhong Hua believes that small and medium-sized trading enterprises dare not accept credit payments, mainly due to the lack of related financial institutions and financial products. He suggested that the government encourage the development of financial institutions and financial products that support foreign trade enterprises' financing.

Yesterday, the business of Datong, a representative of the National People's Congress, is not a foreign trade enterprise. However, it is dealing with numerous foreign trade enterprises every day. The platform of the foreign trade supply chain of a Datong company provides a one-stop service for foreign trade enterprises such as customs declaration, commodity inspection, logistics, banking, customs and tax refund through the whole e-commerce.

Wei Qiang said that through the integration of resource capabilities of the supply chain platform, the company will also package all the links of foreign trade enterprises to suppliers, and get the "group purchase price" to help enterprises reduce costs close to 30%.

The company has invested 400 million yuan in loans to small and medium enterprises, and has not yet found a bad debt.

At present, the Bank of China has carried out strategic cooperation with the platform. Through intensive resource packing, the bank has unified credit, providing credit card loans, credit sale loans and stock financing loans for small businesses, indirectly improving the financial capability of enterprises, so that enterprises can not have the ability to pay for credit without facing the banks.

"Trade financing is the most effective way to support small and medium-sized export enterprises."

Zhong Hua believes that the supply chain platform provided by Tatton is a trade mode innovation and is worth promoting.

He also suggested that interest and bad debt subsidies be provided to the corresponding trade service institutions, so as to increase their investment in the real economy.

Shen Yongfang, the representative of the Shenzhen garment industry association, expressed her appreciation for the platform for providing solutions to foreign trade enterprises. She said it would help bridge some small and medium-sized clothing enterprises in deep trouble in Shenzhen to expand more channels for docking financial services with small and micro enterprises, and help more foreign trade enterprises to tide over difficulties.