Commodity refers to the raw material products that have the properties of liquid products and can be used in industry and agriculture. In the financial investment market, crude oil, non-ferrous metals, agricultural products, iron ore, coal and other commodities are widely used as industrial basic raw materials. Including three categories, namely energy commodities, basic raw materials and agricultural and sideline products.
It has four characteristics: First, the price fluctuates greatly. Only when commodity prices fluctuate greatly, traders who intend to avoid price risks need to use forward prices to determine prices first; Second, the supply and demand are large; Third, it is easy to classify and standardize; Fourth, it is convenient for storage and transportation.
China has become. The data shows that in 2009, China's imports of various commodities reached a record high, including iron ore imports of 630 million tons, up 41.6% year-on-year; Copper imports were 4.29 million tons, a year-on-year increase of 62.8%; Soybean imports were 42.55 million tons, up13.7% year-on-year; Coal imports1.300 million tons, up 2. 1 times year-on-year.
Generally speaking, big means. Broadly speaking, as long as banks provide financing services for enterprises engaged in commodity trade, the business belongs to the category of commodity trade financing.
In a narrow sense, it means that structured commodity traders or production enterprises provide personalized combined trade financing schemes, which play the role of liquidity management and risk mitigation in the production and purchase and sale activities of enterprises. Banks need to focus on goods or goods rights, focus on goods and trade processes, and ensure that financing can be repaid based on trade itself. In the form of product portfolio; Second, we should identify the risks in all aspects of trade and transfer them.
Although the structured trade financing of bulk commodities is in the form of various product combinations, its essence is several credit ideas of various former banks: First, it is mainly based on corporate statements. This idea is to identify whether the financial situation can support the current or expected liabilities by analyzing the financial statements of enterprises, and its core is to pay attention to the profitability of enterprises and this repayment method. Report analysis can objectively reflect the function of enterprise's goods trade financing, which can not be ignored. The second credit concept focuses on cash flow. This idea holds that the cash flow of an enterprise is more important than profit, and the source of repayment should come from cash flow. Under this concept, the performance risk of enterprises is very critical. Banks are concerned about whether borrowers can always perform their duties to ensure the continuous inflow of accounts receivable, and need to analyze and evaluate the performance ability, willingness, market risk and payment risk of enterprises. The third concept of credit granting, the concept of exchanging pledged assets for cash flow, is characterized by realization and can be used as repayment.
Banks need to pay more attention to the risk of weekly cash flow financing of enterprise assets, because as long as banks actually control the collateral, it is easier to realize cash flow. Credit concept based on asset mortgage and cash flow is the most commonly used method in commodity trade financing business. Banks ensure the self-compensation of financing by controlling the accounts receivable, purchase and sale contracts and inventory of enterprises. Finally, credit enhancement is the starting point. This concept provides guarantee for credit projects and financing repayment by introducing a third-party institution with good credit standing. It has obvious advantages in risk mitigation, for example, the risk weight of export credit insurance financing in the capital adequacy ratio system of the Bank for International Settlements is zero, so it can be used as a useful supplement to the financing scheme.
There is no standardized structural model of commodity trade financing, but its essence lies in tailoring according to the needs and environment of all parties to reduce risks. There are four modes: chattel financing, pre-delivery financing, processing financing and back-to-back financing.
Chattel financing refers to short-term financing provided by banks with goods or raw materials held by production enterprises or traders in the process of purchase and sale as collateral. Common structures include: spot pledge financing, futures cargo rights opening letters of credit and bills of lading financing, export warehouse receipts for bills of lading financing, standard warehouse receipts pledge financing and so on. The main risks faced by banks in chattel financing business include marketization risk, price risk and management risk. Therefore, the goods under this financing structure need to be highly liquid and easy to keep. At the same time, the bank needs to confirm that the goods shall not be accompanied by any other mortgage or guarantee, so as to ensure that the bank really obtains the ownership of the financing goods. In addition, it is necessary to evaluate the supervision ability and internal management level of warehousing and logistics companies, and the borrower can be required to insure warehousing insurance or other related insurance for mortgaged goods according to the nature and storage environment of the goods. The price risk of pledge is mainly controlled by setting the pledge rate and price warning line, hedging and locking the sales contract.
Pre-shipment financing refers to the financing provided by banks to suppliers or buyers according to the needs of enterprises before the goods are shipped. According to different financing objects, it can be divided into pre-shipment financing and prepaid financing. Pre-shipment financing refers to the financing provided by banks for suppliers to purchase raw materials according to orders or letters of credit before production and delivery, such as packaged loans and order financing. Since the financing structure is based on letter of credit or strong buyer's order, the main risk faced by banks lies in the supplier's performance risk. Banks need to investigate the seller's performance ability and willingness in detail, and limit or track the financing purpose. Prepayment financing means that the bank gives the buyer financing and pays it directly to the supplier according to the prepayment clause in the sales contract. Because the buyer pays before receiving the goods, in order to protect the interests of the bank, it is necessary to take corresponding risk mitigation measures, such as signing a repurchase agreement with the seller, or agreeing to send the goods to the designated supervisor, or accepting the rights and interests of the buyer under the contract.
Processing financing refers to bank financing in which processing or refining enterprises purchase raw materials from raw material suppliers, sell finished products to downstream users after processing and refining, and guarantee repayment to banks with their accounts receivable. This kind of financing can be provided not only to processing enterprises, but also to raw material suppliers and end users, and is often used in combination with movable property financing. Under this financing structure, the performance risk of processing and refining enterprises mainly depends on the ability to process raw materials, so banks need to master the factory's report on processing capacity and control the use of financing funds, that is, to be used exclusively for the procurement of raw materials. At the same time, it is necessary to evaluate the payment ability of end users to ensure the safe return of payment. At the same time, we should also consider the price risk. Because the price of raw materials is inconsistent with the price of finished products, the profit rate of processing links will change, and even the sales return can not cover the procurement cost, which will affect the repayment ability of enterprises.
The main body of back-to-back financing is self-operated traders, and the most important form is back-to-back letter of credit. The bank opens a sub-letter of credit with the future receivables under the mother letter as the repayment source as the intermediary. There are many changes in the structure of back-to-back letters of credit, such as the mother letter of credit is a forward letter of credit and the child letter of credit is a sight letter of credit; The mother certificate is multiple letters of credit, and the child certificate is one letter of credit; Embedding freight financing in back-to-back letters of credit. At the same time, it can also evolve into a variety of back-to-back financing forms, such as quasi-back-to-back letter of credit, face-to-face letter of credit, letter of credit based on D/P contract and so on. Under this financing structure, the bank needs to have the corresponding correspondent bank quota for the issuing bank of the mother card, and at the same time, it will require the middleman to submit the relevant documents in advance to ensure the timeliness of replacing the documents. After the bank pays the documents under the sub-voucher, the goods ownership certificate becomes the pledge target of the bank. If the issuing bank of the mother certificate refuses to pay for the goods, the bank can control the goods through the title certificate.
Second, how to finance commodity trade.
Bulk commodities refer to material commodities that can enter the circulation field, but are not retail links, and have the commodity attributes of industrial and agricultural production and consumption. In the financial investment market, bulk commodities refer to homogeneous, tradable commodities such as crude oil, nonferrous metals, agricultural products, iron ore and coal, which are widely used as industrial basic raw materials. Including three categories, namely energy commodities, basic raw materials and agricultural and sideline products.
It has four characteristics: First, the price fluctuates greatly. Only when commodity prices fluctuate greatly, traders who intend to avoid price risks need to use forward prices to determine prices first; Second, the supply and demand are large; Third, it is easy to classify and standardize; Fourth, it is convenient for storage and transportation.
China has become a big importer and consumer of international commodities. The data shows that in 2009, China's imports of various commodities reached a record high, including iron ore imports of 630 million tons, up 41.6% year-on-year; Copper imports were 4.29 million tons, a year-on-year increase of 62.8%; Soybean imports were 42.55 million tons, up13.7% year-on-year; Coal imports1.300 million tons, up 2. 1 times year-on-year.
Generally speaking, commodity trade financing can be divided into two meanings. Broadly speaking, as long as banks provide financing services for enterprises engaged in commodity trade, the business belongs to the category of commodity trade financing.
In a narrow sense, it refers to the structural trade financing of bulk commodities, that is, banks provide personalized combined trade financing schemes for bulk commodity traders or production enterprises, thus playing the role of liquidity management and risk mitigation in the production and purchase and sale activities of enterprises. Banks need to focus on goods or goods rights, focus on goods and trade processes, and ensure that financing can be repaid based on trade itself. It has two remarkable characteristics: first, the form of expression is product combination; The second is to identify the risks in all aspects of trade and mitigate or transfer them through schemes.
Although structured trade financing of bulk commodities is the form of various product combinations, its essence is the comprehensive application of various credit concepts. At present, the bank's credit ideas are mainly as follows: first, it is mainly based on corporate statements. This concept is to identify whether the financial situation can support the current or expected liabilities by analyzing the relationship between the indicators in the financial statements of enterprises, and its core is to pay attention to the profitability of enterprises. The repayment concept of this method is first based on financial statements. Report analysis can objectively reflect the overall debt situation of enterprises, so its role in commodity trade financing can not be ignored. The second credit concept focuses on cash flow. This idea holds that the cash flow of an enterprise is more important than profit, and the source of repayment should come from cash flow. Under this concept, the performance risk of enterprises is very critical. Banks are concerned about whether borrowers can always perform their duties to ensure the continuous inflow of accounts receivable, and need to analyze and evaluate the performance ability, willingness, market risk and payment risk of enterprises. The third credit concept focuses on asset pledge. This method is different from the concept of cash flow. Banks have the ability to grasp the actual collateral and realize it, which can be used as a supplement to the repayment source.
Banks need to pay more attention to the asset turnover rate and inventory of enterprises. It is less risky than financing based on cash flow, because as long as the bank actually controls the collateral, it will be easier to realize cash flow. Credit concept based on asset mortgage and cash flow is the most commonly used method in commodity trade financing business. Banks ensure the self-compensation of financing by controlling the accounts receivable, purchase and sale contracts and inventory of enterprises. Finally, credit enhancement is the starting point. This concept provides guarantee for credit projects and financing repayment by introducing a third-party institution with good credit standing. It has obvious advantages in risk mitigation, for example, the risk weight of export credit insurance financing in the capital adequacy ratio system of the Bank for International Settlements is zero, so it can be used as a useful supplement to the financing scheme.
There is no standardized structural model of commodity trade financing, but its essence lies in tailoring according to the needs and environment of all parties to reduce risks. There are four modes: chattel financing, pre-delivery financing, processing financing and back-to-back financing.
Chattel financing refers to short-term financing provided by banks with goods or raw materials held by production enterprises or traders in the process of purchase and sale as collateral. Common structures include: spot pledge financing, futures cargo rights opening letters of credit and bills of lading financing, export warehouse receipts for bills of lading financing, standard warehouse receipts pledge financing and so on. The main risks faced by banks in chattel financing business include marketization risk, price risk and management risk. Therefore, the goods under this financing structure need to be highly liquid and easy to keep. At the same time, the bank needs to confirm that the goods shall not be accompanied by any other mortgage or guarantee, so as to ensure that the bank really obtains the ownership of the financing goods. In addition, it is necessary to evaluate the supervision ability and internal management level of warehousing and logistics companies, and the borrower can be required to insure warehousing insurance or other related insurance for mortgaged goods according to the nature and storage environment of the goods. The price risk of pledge is mainly controlled by setting the pledge rate and price warning line, hedging and locking the sales contract.
Pre-shipment financing refers to the financing provided by banks to suppliers or buyers according to the needs of enterprises before the goods are shipped. According to different financing objects, it can be divided into pre-shipment financing and prepaid financing. Pre-shipment financing refers to the financing provided by banks for suppliers to purchase raw materials according to orders or letters of credit before production and delivery, such as packaged loans and order financing. Since the financing structure is based on letter of credit or strong buyer's order, the main risk faced by banks lies in the supplier's performance risk. Banks need to investigate the seller's performance ability and willingness in detail, and limit or track the financing purpose. Prepayment financing means that the bank gives the buyer financing and pays it directly to the supplier according to the prepayment clause in the sales contract. Because the buyer pays before receiving the goods, in order to protect the interests of the bank, it is necessary to take corresponding risk mitigation measures, such as signing a repurchase agreement with the seller, or agreeing to send the goods to the designated supervisor, or accepting the rights and interests of the buyer under the contract.
Processing financing refers to bank financing in which processing or refining enterprises purchase raw materials from raw material suppliers, sell finished products to downstream users after processing and refining, and guarantee repayment to banks with their accounts receivable. This kind of financing can be provided not only to processing enterprises, but also to raw material suppliers and end users, and is often used in combination with movable property financing. Under this financing structure, the performance risk of processing and refining enterprises mainly depends on the ability to process raw materials, so banks need to master the factory's report on processing capacity and control the use of financing funds, that is, to be used exclusively for the procurement of raw materials. At the same time, it is necessary to evaluate the payment ability of end users to ensure the safe return of payment. At the same time, we should also consider the price risk. Because the price of raw materials is inconsistent with the price of finished products, the profit rate of processing links will change, and even the sales return can not cover the procurement cost, which will affect the repayment ability of enterprises.
The main body of back-to-back financing is self-operated traders, and the most important form is back-to-back letter of credit. The bank opens a sub-letter of credit with the future receivables under the mother letter as the repayment source as the intermediary. There are many changes in the structure of back-to-back letters of credit, such as the mother letter of credit is a forward letter of credit and the child letter of credit is a sight letter of credit; The mother certificate is multiple letters of credit, and the child certificate is one letter of credit; Embedding freight financing in back-to-back letters of credit. At the same time, it can also evolve into a variety of back-to-back financing forms, such as quasi-back-to-back letter of credit, face-to-face letter of credit, letter of credit based on D/P contract and so on. Under this financing structure, the bank needs to have the corresponding correspondent bank quota for the issuing bank of the mother card, and at the same time, it will require the middleman to submit the relevant documents in advance to ensure the timeliness of replacing the documents. After the bank pays the documents under the sub-voucher, the goods ownership certificate becomes the pledge target of the bank. If the issuing bank of the mother certificate refuses to pay for the goods, the bank can control the goods through the title certificate.
Third, how to finance commodity trade.
Bulk commodities refer to material commodities that can enter the circulation field, but are not retail links, and have the commodity attributes of industrial and agricultural production and consumption. In the financial investment market, bulk commodities refer to homogeneous, tradable commodities such as crude oil, nonferrous metals, agricultural products, iron ore and coal, which are widely used as industrial basic raw materials. Including three categories, namely energy commodities, basic raw materials and agricultural and sideline products.
It has four characteristics: First, the price fluctuates greatly. Only when commodity prices fluctuate greatly, traders who intend to avoid price risks need to use forward prices to determine prices first; Second, the supply and demand are large; Third, it is easy to classify and standardize; Fourth, it is convenient for storage and transportation.
China has become a big importer and consumer of international commodities. The data shows that in 2009, China's imports of various commodities reached a record high, including iron ore imports of 630 million tons, up 41.6% year-on-year; Copper imports were 4.29 million tons, a year-on-year increase of 62.8%; Soybean imports were 42.55 million tons, up13.7% year-on-year; Coal imports1.300 million tons, up 2. 1 times year-on-year.
Generally speaking, commodity trade financing can be divided into two meanings. Broadly speaking, as long as banks provide financing services for enterprises engaged in commodity trade, the business belongs to the category of commodity trade financing.
In a narrow sense, it refers to the structural trade financing of bulk commodities, that is, banks provide personalized combined trade financing schemes for bulk commodity traders or production enterprises, thus playing the role of liquidity management and risk mitigation in the production and purchase and sale activities of enterprises. Banks need to focus on goods or goods rights, focus on goods and trade processes, and ensure that financing can be repaid based on trade itself. It has two remarkable characteristics: first, the form of expression is product combination; The second is to identify the risks in all aspects of trade and mitigate or transfer them through schemes.
Although structured trade financing of bulk commodities is the form of various product combinations, its essence is the comprehensive application of various credit concepts. At present, the bank's credit ideas are mainly as follows: first, it is mainly based on corporate statements. This concept is to identify whether the financial situation can support the current or expected liabilities by analyzing the relationship between the indicators in the financial statements of enterprises, and its core is to pay attention to the profitability of enterprises. The repayment concept of this method is first based on financial statements. Report analysis can objectively reflect the overall debt situation of enterprises, so its role in commodity trade financing can not be ignored. The second credit concept focuses on cash flow. This idea holds that the cash flow of an enterprise is more important than profit, and the source of repayment should come from cash flow. Under this concept, the performance risk of enterprises is very critical. Banks are concerned about whether borrowers can always perform their duties to ensure the continuous inflow of accounts receivable, and need to analyze and evaluate the performance ability, willingness, market risk and payment risk of enterprises. The third credit concept focuses on asset pledge. This method is different from the cash flow concept of 323131335323635438+034313635438+03635359 e7ad94313332643166, and has the following characteristics.
Banks need to pay more attention to the asset turnover rate and inventory of enterprises. It is less risky than financing based on cash flow, because as long as the bank actually controls the collateral, it will be easier to realize cash flow. Credit concept based on asset mortgage and cash flow is the most commonly used method in commodity trade financing business. Banks ensure the self-compensation of financing by controlling the accounts receivable, purchase and sale contracts and inventory of enterprises. Finally, credit enhancement is the starting point. This concept provides guarantee for credit projects and financing repayment by introducing a third-party institution with good credit standing. It has obvious advantages in risk mitigation, for example, the risk weight of export credit insurance financing in the capital adequacy ratio system of the Bank for International Settlements is zero, so it can be used as a useful supplement to the financing scheme.
There is no standardized structural model of commodity trade financing, but its essence lies in tailoring according to the needs and environment of all parties to reduce risks. There are four modes: chattel financing, pre-delivery financing, processing financing and back-to-back financing.
Chattel financing refers to short-term financing provided by banks with goods or raw materials held by production enterprises or traders in the process of purchase and sale as collateral. Common structures include: spot pledge financing, futures cargo rights opening letters of credit and bills of lading financing, export warehouse receipts for bills of lading financing, standard warehouse receipts pledge financing and so on. The main risks faced by banks in chattel financing business include marketization risk, price risk and management risk. Therefore, the goods under this financing structure need to be highly liquid and easy to keep. At the same time, the bank needs to confirm that the goods shall not be accompanied by any other mortgage or guarantee, so as to ensure that the bank really obtains the ownership of the financing goods. In addition, it is necessary to evaluate the supervision ability and internal management level of warehousing and logistics companies, and the borrower can be required to insure warehousing insurance or other related insurance for mortgaged goods according to the nature and storage environment of the goods. The price risk of pledge is mainly controlled by setting the pledge rate and price warning line, hedging and locking the sales contract.
Pre-shipment financing refers to the financing provided by banks to suppliers or buyers according to the needs of enterprises before the goods are shipped. According to different financing objects, it can be divided into pre-shipment financing and prepaid financing. Pre-shipment financing refers to the financing provided by banks for suppliers to purchase raw materials according to orders or letters of credit before production and delivery, such as packaged loans and order financing. Since the financing structure is based on letter of credit or strong buyer's order, the main risk faced by banks lies in the supplier's performance risk. Banks need to investigate the seller's performance ability and willingness in detail, and limit or track the financing purpose. Prepayment financing means that the bank gives the buyer financing and pays it directly to the supplier according to the prepayment clause in the sales contract. Because the buyer pays before receiving the goods, in order to protect the interests of the bank, it is necessary to take corresponding risk mitigation measures, such as signing a repurchase agreement with the seller, or agreeing to send the goods to the designated supervisor, or accepting the rights and interests of the buyer under the contract.
Processing financing refers to bank financing in which processing or refining enterprises purchase raw materials from raw material suppliers, sell finished products to downstream users after processing and refining, and guarantee repayment to banks with their accounts receivable. This kind of financing can be provided not only to processing enterprises, but also to raw material suppliers and end users, and is often used in combination with movable property financing. Under this financing structure, the performance risk of processing and refining enterprises mainly depends on the ability to process raw materials, so banks need to master the factory's report on processing capacity and control the use of financing funds, that is, to be used exclusively for the procurement of raw materials. At the same time, it is necessary to evaluate the payment ability of end users to ensure the safe return of payment. At the same time, we should also consider the price risk. Because the price of raw materials is inconsistent with the price of finished products, the profit rate of processing links will change, and even the sales return can not cover the procurement cost, which will affect the repayment ability of enterprises.
The main body of back-to-back financing is self-operated traders, and the most important form is back-to-back letter of credit. The bank opens a sub-letter of credit with the future receivables under the mother letter as the repayment source as the intermediary. There are many changes in the structure of back-to-back letters of credit, such as the mother letter of credit is a forward letter of credit and the child letter of credit is a sight letter of credit; The mother certificate is multiple letters of credit, and the child certificate is one letter of credit; Embedding freight financing in back-to-back letters of credit. At the same time, it can also evolve into a variety of back-to-back financing forms, such as quasi-back-to-back letter of credit, face-to-face letter of credit, letter of credit based on D/P contract and so on. Under this financing structure, the bank needs to have the corresponding correspondent bank quota for the issuing bank of the mother card, and at the same time, it will require the middleman to submit the relevant documents in advance to ensure the timeliness of replacing the documents. After the bank pays the documents under the sub-voucher, the goods ownership certificate becomes the pledge target of the bank. If the issuing bank of the mother certificate refuses to pay for the goods, the bank can control the goods through the title certificate.
Fourth, how to finance commodity trade?
Bulk commodities refer to material commodities that can enter the circulation field, but are not retail links, and have the commodity attributes of industrial and agricultural production and consumption. In the financial investment market, bulk commodities refer to homogeneous, tradable commodities such as crude oil, nonferrous metals, agricultural products, iron ore and coal, which are widely used as industrial basic raw materials. Including three categories, namely energy commodities, basic raw materials and agricultural and sideline products.
It has four characteristics: First, the price fluctuates greatly. Only when commodity prices fluctuate greatly, traders who intend to avoid price risks need to use forward prices to determine prices first; Second, the supply and demand are large; Third, it is easy to classify and standardize; Fourth, it is convenient for storage and transportation.
China has become a big importer and consumer of international commodities. The data shows that in 2009, China's imports of various commodities reached a record high, including iron ore imports of 630 million tons, up 41.6% year-on-year; Copper imports were 4.29 million tons, a year-on-year increase of 62.8%; Soybean imports were 42.55 million tons, up13.7% year-on-year; Coal imports1.300 million tons, up 2. 1 times year-on-year.
Generally speaking, commodity trade financing can be divided into two meanings. Broadly speaking, as long as banks provide financing services for enterprises engaged in commodity trade, the business belongs to the category of commodity trade financing.
In a narrow sense, it refers to the structural trade financing of bulk commodities, that is, banks provide personalized combined trade financing schemes for bulk commodity traders or production enterprises, thus playing the role of liquidity management and risk mitigation in the production and purchase and sale activities of enterprises. Banks need to focus on goods or goods rights, focus on goods and trade processes, and ensure that financing can be repaid based on trade itself. It has two remarkable characteristics: first, the form of expression is product combination; The second is to identify the risks in all aspects of trade and mitigate or transfer them through schemes.
Although structured trade financing of bulk commodities is the form of various product combinations, its essence is the comprehensive application of various credit concepts. At present, the bank's credit ideas are mainly as follows: first, it is mainly based on corporate statements. This concept is to identify whether the financial situation can support the current or expected liabilities by analyzing the relationship between the indicators in the financial statements of enterprises, and its core is to pay attention to the profitability of enterprises. The repayment concept of this method is first based on financial statements. Report analysis can objectively reflect the overall debt situation of enterprises, so its role in commodity trade financing can not be ignored. The second credit concept focuses on cash flow. This idea holds that the cash flow of an enterprise is more important than profit, and the source of repayment should come from cash flow. Under this concept, the performance risk of enterprises is very critical. Banks are concerned about whether borrowers can always perform their duties to ensure the continuous inflow of accounts receivable, and need to analyze and evaluate the performance ability, willingness, market risk and payment risk of enterprises. The third credit concept focuses on asset pledge. This method is different from the concept of cash flow. Banks have the ability to grasp the actual collateral and realize it, which can be used as a supplement to the repayment source.
Banks need to pay more attention to the asset turnover rate and inventory of enterprises. It is less risky than financing based on cash flow, because as long as the bank actually controls the collateral, it will be easier to realize cash flow. Credit concept based on asset mortgage and cash flow is the most commonly used method in commodity trade financing business. Banks ensure the self-compensation of financing by controlling the accounts receivable, purchase and sale contracts and inventory of enterprises. Finally, credit enhancement is the starting point. This concept provides guarantee for credit projects and financing repayment by introducing a third-party institution with good credit standing. It has obvious advantages in risk mitigation, for example, the risk weight of export credit insurance financing in the capital adequacy ratio system of the Bank for International Settlements is zero, so it can be used as a useful supplement to the financing scheme.
There is no standardized structural model of commodity trade financing, but its essence lies in tailoring according to the needs and environment of all parties to reduce risks. There are four modes: chattel financing, pre-delivery financing, processing financing and back-to-back financing.
Chattel financing refers to short-term financing provided by banks with goods or raw materials held by production enterprises or traders in the process of purchase and sale as collateral. Common structures include: spot pledge financing, futures cargo rights opening letters of credit and bills of lading financing, export warehouse receipts for bills of lading financing, standard warehouse receipts pledge financing and so on. The main risks faced by banks in chattel financing business include marketization risk, price risk and management risk. Therefore, the goods under this financing structure need to be highly liquid and easy to keep. At the same time, the bank needs to confirm that the goods shall not be accompanied by any other mortgage or guarantee, so as to ensure that the bank really obtains the ownership of the financing goods. In addition, it is necessary to evaluate the supervision ability and internal management level of warehousing and logistics companies, and the borrower can be required to insure warehousing insurance or other related insurance for mortgaged goods according to the nature and storage environment of the goods. The price risk of pledge is mainly controlled by setting the pledge rate and price warning line, hedging and locking the sales contract.
Pre-shipment financing refers to the financing provided by banks to suppliers or buyers according to the needs of enterprises before the goods are shipped. According to different financing objects, it can be divided into pre-shipment financing and prepaid financing. Pre-shipment financing refers to the financing provided by banks for suppliers to purchase raw materials according to orders or letters of credit before production and delivery, such as packaged loans and order financing. Since the financing structure is based on letter of credit or strong buyer's order, the main risk faced by banks lies in the supplier's performance risk. Banks need to investigate the seller's performance ability and willingness in detail, and limit or track the financing purpose. Prepayment financing means that the bank gives the buyer financing and pays it directly to the supplier according to the prepayment clause in the sales contract. Because the buyer pays before receiving the goods, in order to protect the interests of the bank, it is necessary to take corresponding risk mitigation measures, such as signing a repurchase agreement with the seller, or agreeing to send the goods to the designated supervisor, or accepting the rights and interests of the buyer under the contract.
Processing financing refers to bank financing in which processing or refining enterprises purchase raw materials from raw material suppliers, sell finished products to downstream users after processing and refining, and guarantee repayment to banks with their accounts receivable. This kind of financing can be provided not only to processing enterprises, but also to raw material suppliers and end users, and is often used in combination with movable property financing. Under this financing structure, the performance risk of processing and refining enterprises mainly depends on the ability to process raw materials, so banks need to master the factory's report on processing capacity and control the use of financing funds, that is, to be used exclusively for the procurement of raw materials. At the same time, it is necessary to evaluate the payment ability of end users to ensure the safe return of payment. At the same time, we should also consider the price risk. Because the price of raw materials is inconsistent with the price of finished products, the profit rate of processing links will change, and even the sales return can not cover the procurement cost, which will affect the repayment ability of enterprises.
The main body of back-to-back financing is self-operated traders, and the most important form is back-to-back credit.