In the last series of articles on chain finance, it was mentioned that accounts receivable financing is mainly divided into five categories - factoring, factoring pool financing, reverse factoring, bill pool credit, and special chain financial forms for export enterprises, and first introduced the factoring business in detail. In this issue, we will focus on the factoring pool business.
Overview of the factoring pool business
When the accounts receivable of the enterprise ** existsWhen the buyers are scattered, the transactions are frequent, and the account period is not uniform, per receivableIt is impractical to handle all of them separatelyIt will only increase the amount of inefficient workTherefore, the use of factoring pool financing has become the preferred financing option in this case
1.Factoring pool definition
Factoring pool financingIt means that the seller brings together one or more accounts receivable from different buyers, different terms and different amounts, and transfers all of them to the factor at one time, so that the accounts receivable form a "pool", and the factor provides a certain proportion of financing funds for the seller according to the number of funds in the "pool". This business model is very beneficial to enterprises with stable accounts receivable balances and good transaction records, which can fully tap the financing ability of sellers to collect accounts in a piecemeal manner, and also eliminate the procedures of separate factoring services and improve financing efficiency.
2.Factoring pool business processes
First, the seller forms multiple accounts receivable with one or more buyers. The seller signs a factoring pool financing service agreement with the factorThe seller assigns multiple receivables to the factor in a lump sum and notifies each buyer that the receivables have been transferred. Then, after being confirmed by the buyer of each account receivable, the factor issues a certain percentage of the loan to the seller according to the amount of funds in the factoring poolFinally, to the agreed deadline(The billing period should generally be within 180 days).Buyers can pay their accounts receivable on time.
Source: **Internet.
3.Advantages of factoring pool financing and key points of risk control
(1) Advantages of factoring pool financing
Reduce the risk of single repayments
Since the buyers in the factoring pool are scattered, it is not easy to fail to repay at the same timeWarrantyWe can reduce the risk of repayment by consolidating the accounts receivable of multiple buyersAt the same time, it can also be borrowedAvoid the integrity of the business in the processinsurance
Procedures are simplified, and operating and personnel costs are reduced
The operation of the factoring pool eliminates the need for multiple business procedures, and the procedures for transferring accounts receivable are also simplified, which reduces the cost of financing and operation to a certain extent. At the same time, the factor does not need to send special personnel to track the loan, which reduces the time spent by personnel in this business and reduces the cost of personnel compared with the accounts receivable that are connected with a single person and collects and integrates data.
Revolving financing
Under the factoring pool financing modelIf the enterprise can retain the accounts receivable above the minimum balance at any time during the credit period, then the enterprise can recycle the financing line, and the financing term and amount will not be limited by the amount and term of a single account receivable。Revolving financing can simplify the financing process, improve the efficiency of lending, eliminate the need to repeat the procedures for loan repayment, and reduce the time for funds to be invalidly occupied.
Source: pixabay
(2) Key points of risk control of factoring pool financing
Filter customers
Factoring pool financing is a systematic arrangement for enterprise accounts receivable, and a business with a good credit record should be selected as the service object. Refer to the credit risk factors in the key points of risk control of factoring business(Click to jump to accounts receivable factoring financing business).Screen the best business customers.
Filter accounts receivable
To screen accounts receivable, it is necessary to choose buyers with good credit history who can maintain long-term cooperative relations with ** merchants, the accounts receivable between it and the ** merchant are regarded as accounts receivable in the factoring pool.
Establish a real-time accounts receivable management information system
After ensuring the authenticity of the accounts receivable in the factoring poolIt should alsoEstablish a real-time accounts receivable management information system to track and monitor the sales collection of the first businessUnderstand the dynamics of receivables over an agreed periodThis results in a targeted reduction of controllable risks.
An example of a bank factoring pool product
For example, the Postal Savings Bank of China, China CITIC Bank, Bank of Zhengzhou, etc., all provide customers with factoring pool financing services.
A domestic factoring product launched by the Postal Savings BankThe peculiarity lies inOptimize financial statements and accelerate cash turnover；Accounts receivable management services provided by banksSave enterprise management costs.
China CITIC Bank has launched a "pool factoring" service under its e-trade and finance product system, tailor-made chain finance and financing solutions for customersWith the help of cloud computing, big data, Internet of Things and other innovative meansFor the client and the upstream and downstream of the transaction chainProvide a full range of comprehensive financing services in the whole chain.
Bank of Zhengzhou's "domestic factoring pool" businessThe special feature is that,It can meet the financing needs of accounts receivable with a short account period and a faster return based on the long-term, stable and continuous relationship between the buyer and the seller；Compared with the operation mode of a single account receivable corresponding to a single financingFactoring pool financing allows for the management of the lower limit of the pool balance of eligible receivables, which can break through the limits of the amount and term of a single receivable.
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