Manufactory-Distributor-Bank-Warehouse four-party cooperation

Product Overview

Credit of manufacturer, dealer, bank, and storage means that CGB make use of the role of logistics companies to achieve closed operation of cash flow, logistics, and information flow under the control of banks, manufacturers, distributors, and storage companies, so as to achieve the four-win situation.

Credit of manufacturer, dealer, bank, and storage expands the credit-granting business scope of manufacturer, dealer, and bank, specifically supports "weak" dealers with financial difficulties, enhances the market competitiveness of the products of manufacturers, and expands the sales scale of distributors.

Flow

And comparing tripartite cooperation credit of manufacturers, dealers (factories), and banks, the difference of the four-sided cooperation credit of manufacturers, dealers, banks, and storage is that upstream manufacturers will deliver the goods to storage company designated by credit bank for supervision after receiving the advance payment, meanwhile they must go through the procedures of inventory pledging.

Features and advantages of prepayment financing

The credit of manufacturer, dealer, bank, and storage means that the dealers rely on the reputation and strength of upstream manufacturers to obtain bank credit and transfers to movable property pledge after delivery, which solve the problem of the capital required by dealers in purchase and sales.

For upstream manufactories: reduces the debt proportion of the manufactory, reduces the corporate financial cost, improves the product competitiveness; greatly reduces the account receivables, greatly speeds up the capital return; supports the manufactory to expand the sales rapidly; further understands the credit status and financial status of the distributor through the close cooperation with the bank.
For downstream distributors and manufactories: The financing needs in purchase + sales are met; obtains more rebates from the manufactory; solves the difficulty of the distributor in financing guarantee, obtains the financing from the bank and effectively expands the sales.

Our commitment

We provide you with the customer credit investigation, commercial contract review, goods flow tracking, notice on commodity arrival at station/port.
You only need to pay a certain proportion of deposit margins to buy back the goods from the manufactory, which saves the operation funds, obtains more discounts from the upstream manufactory, obtains more business opportunities and increases the fund usage efficiency

Kind Reminders

1.        The close cooperation of the upstream manufactory must be obtained, and the three-party or four-party agreement must be signed jointly. The manufactory usually must undertake the buy-back responsibility, joint guarantee responsibility or defined payment responsibility. The defined payment means that the manufactory deducts the amount for the goods picked up by the distributor from the face amount of the banker¡¯s acceptance bill which is used as the advance payment, and returns the surplus portion to the account designed by the credit granting bank;

2.        If the manufactory-distributor-bank-warehouse credit granting is adopted, a regulatory company approved by our bank must be available for regulation and supervision.