Introduction to New Product¡ªStorage Trade Banking

Service Overview

Storage trade banking service means that CGB establishes the closed running cycle for spot transaction funds and goods in light of the principles and mechanism for the closed running and management of the futures margin in the futures market, and finishes the settlement of payment for goods and negotiation of goods under the monitoring by the bank and cooperative warehouse. CGB provides a series of comprehensive financial services including trade financing, settlement of payment for goods and information service to the customers in the course of trade. Such services can be finished through the closed transaction and settlement service platform for the storage trade banking that has been researched and developed by CGB itself.

Features

1.      It is a kind of transaction settlement service, and equipped with such functions as spot transaction, payment and collection of funds for goods as an e-commerce platform;

2.      It can provide diversified trade financing solutions:

(1)    Pure warehouse receipt financing: customer can pledge the non-standard warehouse receipt issued by the cooperative warehouse, and CGB will offer financial loan per rata;

(2)    Buyer¡¯s financing: in combination with the platform operation, CGB will provide the buyer with advance payment to raise fund and support the buyer¡¯s procurement;

(3)    Seller¡¯s pledge transaction and simultaneous financing by both the buyer and the seller: it can realize pledge transaction when no documents are redeemed, and grant accounts receivable financing to support the simultaneous financing by both the buyer and the seller;

(4)    Supporting financing by combining other trade products, including combination with the advance payment financing, combination with accounts receivable financing, and combination with standard warehouse receipt financing, etc..

3.      The information service platform

The system can release and inquire about the information on the sales, inventory and price, and provide members with valuable information services;

4.      It offers multiple win-win brand-new business modes

(1)    It increases the service contents and improves the service level of the cooperative warehouse, which is conductive to attracting customers, expanding the capacity of the warehouse, and increasing the influence of the spot market;

(2)    It can meet the customer¡¯s financing needs more efficiently;

(3)    It offers safe and swift transactions, controls the trade risks, increases the trade opportunities, accelerates the turnover and expands the trade scale;

5.      Standardized business process

CGB has developed standardized business process against the storage trade banking product to offer efficient and swift service.

Business Process(Take standard mode for example)

1.      Both the buyer and the seller sign the trade contract and the letter of authorization for supervision of the payment for goods and the goods;

2.      The buyer deposits the performance bond per rata;

3.      The bank signs and issues the Commitment Letter for Releasing the Financing Loan;

4.      The cooperative warehouse transfers the warehouse receipt to the buyer and pledges it to CGB;

5.      CGB releases the financing loan, and pays the loan together with the pre-phase performance bond to the buyer in the form of entrusted payment.

Our Commitments

1.      We offer efficient, swift and standardized business process;

2.     When both the buyer and the seller are the storage trade banking members of CGB, the seller does not need to raise funds to redeem the goods /document, and is allowed to sell and/or pledge the warehouse receipt;

3.      We ensure the safety of both the payment for goods and the goods.

Kind Reminders

1.      CGB only accepts the warehouse receipt issued by the warehouse cooperating with CGB, and the warehouse receipt items and format must conform to CGB¡¯s standards;

2.      The payment for goods and the goods must be delivered in accordance with the letter of authorization for supervision.