China Lending Corporation has announced the launch of its new supply chain financing services, which include a business factoring program.
The program will provide small to medium-sized enterprises (SMEs) with the funding to finance operations and growth. The financing will be completed through Zhiyuan Factoring (Guangzhou) Co., a recently-incorporated, majority-owned subsidiary of China Lending.
In addition, China Lending has acquired 98.04 percent equity interest in Hangzhou Zeshi Investment Partners, which will enable China Lending to launch its new supply chain financing services in the near future, including financing products design, related corporate financing solutions, investments and asset management, and more.
“As the gap between the services that the traditional banking industry provides on the one hand, and the financing demand of a newly emerging body of real economy on the other, widens, the market calls for financing service providers that customize financing solutions to satisfy small businesses’ needs which are essentially locally-embedded, industry-specific, and flexible. It is in this new market niche of financing that China Lending seeks to excel,” said Jingping Li, chairwoman and chief executive officer of China Lending, in a press release.
“Driven by the increasing globalization and complexity of supply chains, supply chain financing has gained growing popularity in recent years in China as more and more companies, including both buyers and sellers, rely on third party services to provide much needed extension of buyer’s account payable terms, inventory finance and invoice factoring, etc.,” she added. “The market of supply chain financing in China reached RMB 14.42 trillion in 2017.
She noted that while factoring has been around for some time as an alternative solution for companies that want to accelerate their account receivables, it has gained popularity in recent years in China “as companies, particularly SMEs, face increasing difficulties in obtaining financing to fund operations or carry out new business initiatives. According to Factors Chain International, China is the largest business factoring market with transaction volume reached over RMB 3.04 trillion in 2017. Leveraging our strong track record of helping SMEs through our existing microlending services, we believe that China Lending is well positioned to capture our fair share of the fast-growing business factoring sector in coming years.”