Advance Payment to Chattel Pledge/Mortgage Credit Granting Product

Product Overview

It refers to a kind of credit granting service that the buyer (distributor) under the trade applies to CGB for advance payment financing to pay the upstream manufactory (seller) for the purchased goods. The manufactory, the distributor and the bank sign a tripartite cooperation agreement. The upstream manufactory ships the goods in accordance with the purchase and sales contract as well as the tripartite cooperation agreement, and pledges/mortgages the sport goods after the goods are received.

Product Features

1.      It can give full play to the buyer’s guarantee resources, in order to realize the financing and relieve the financial pressure;

2.      Relying on the real commodity transaction, the buyer can get the directional financing support based on the credit standing of the upstream manufactory;

3.      The buyer can enjoy privilege for purchase in batch from the manufactory in order to reduce the sales cost;

4.      The seller can effectively support the distributor and cultivate its own sales channels;

5.      The seller shall change the accounts receivable into notes receivable or cash. The sustainable decrease of accounts receivable has not only improved the company’s assets quality, but also avoided the risks in delayed payment and dishonor that may be generated in sales on credit.

Business Process

1.      The distributor signs the purchase and sales contract with the upstream manufactory;

2.      The bank, the distributor and the upstream manufactory sign the tripartite cooperation agreement;

3.      The bank releases the financing loan, and pays to the upstream manufactory directionally, and the manufactory delivers the goods based on the bank’s notice;

4.      The goods are shipped to the warehouse designated by the bank, and supervised by the third-party storage company;

5.      The distributor pays the funds to take delivery of goods, and the business comes to the end normally. 

Our Commitments

1.      CGB can customize personalized financial solution based on customer’s operation characteristics and needs, and provide many business models such as manufactory-distributor-bank business, manufactory-manufactory-bank business, distributor-distributor-bank business, manufactory-distributor-bank deposit, and whole-course financing supervising services;

2.     CGB supports multiple on-balance sheet and off-balance sheet products, including bank acceptance bill, electronic commercial draft, working capital loan, bill discounting with interest paid by the buyer, and consignment agency discounting, etc.