What is supplier financing?

Supplier financing belongs to financing products and is a standardized financing product developed by Minsheng Bank. It refers to a service-oriented comprehensive scheme based on the real product or service transactions between buyers and sellers, with the pledge or transfer of suppliers' accounts receivable as the main risk control means.

Supplier financing also means that banks rely on the high-quality payment ability of the core buyers in the supply chain, and focus on the economic activities of suppliers on the premise of signing a supplier financing cooperation agreement with the core buyers. As some large enterprises generally default on payment for goods, suppliers have a large amount of remittance arrears, which hinders their business activities. Therefore, regarding the pledge of suppliers' accounts receivable, banks and core buyers provide short-term financing services according to the actual situation of suppliers, which is beneficial to all three parties as a guarantee measure. The business characteristics of this wealth management product are as follows: to achieve a win-win situation for all three parties; Solve the financing problem of supplier's fund guarantee; The financing method is implemented according to the actual situation, which is true and flexible.