SME Financing

Warehouse Confirming

  With the supplier's promise to redeem, the purchaser applies loan quota from the bank with the supplier's established warehouse warrant from the warehouse designed by the bank as the collateral; the bank provides the loans on condition that it holds the drawn right.

  Product Features:

  a) Accelerate the business by trusting bank’s reputation;

  b) Assure the recovery of funds; enhance the efficiency of funds occupation;

  c) Provide to the buyer with easy financing ways; solve the problem of funds occupation;

  Convenience Brought:

  a) Provide to the buyer with easy financing ways; solve the problem of funds occupation;

  b) The dealer can order large quantities of the concessional prices offered by the manufacturer, reduce cost of sales;

  c) For products with large seasonal sales variance, the dealer can make purchase order in the off-season, and sales at higher price in the hot season to gain more profits;

  d) Help manufacturers effectively solve the sales channels problems, increase market share, increase profits, reduce accounts receivable occupation, improve capital efficiency;

  Business Process:

  a) Manufacturers and dealers sign annual purchase and sale agreements and contracts;

  b) Manufacturers, dealers and bank of Kunlun sign three parties warehouse confirming finance agreement;

  c) Dealers and bank of Kunlun sign commodity pledge agreement, bank of Kunlun gets goods delivery rights;

  d) Dealers pay certain amounts of warranty to bank of Kunlun and apply for bank accepted bill to pay for the goods to manufactures;

  e) Manufactures according to three parties agreement safe keep the goods under purchase and sale agreements, and take the repurchase guarantee responsibilities for the bank accepted bill warranty uncovered amount;

  f) Dealers pay bank accepted bill warranty;

  g) The bank issues “goods delivery notification” when the warranty amounts arise;

  h) Manufacturers deliver the goods to dealers according to “goods delivery notification” issued by the bank.