Business model of commercial factoring (how to produce factoring services)?
The core enterprise (buyer) signs the basic trade contract with the affiliated enterprise (seller) to generate accounts receivable, and the seller pays the accounts receivable voucher;
The affiliated enterprise (seller) applies to the factoring company for financing services;
The factoring company accepts the application, makes all adjustments and credits to the core enterprise (buyer) and affiliated enterprises (seller), and approves the credit line;
On the basis of accounts receivable and credit line, the core enterprise signs an effective financing service contract after confirming the right;
Factoring companies lend money to affiliated enterprises (sellers);
The platform collects money from core enterprises;
After the account expires, the core enterprise (buyer) repays the factoring company.
Having finished the whole business logic, let's look back at the user-demand-scenario based on products.
Financing party (seller)
Most enterprises with financing needs are in a weak position in the supply chain, because the advance of funds leads to insufficient capital turnover. Therefore, the financing party needs to have an enterprise self-help platform to help it initiate financing and sign contracts.
2. Core enterprise (buyer)
Because the core enterprises are in an advantageous position, and in order to expand the product line, the core enterprises often set up factoring financial control companies to improve their internal financial turnover ability. When dealing with the financing party, when the financing party (seller) is in urgent need of money, the core enterprise (buyer) will ask the financing party (seller) to apply for transferring the accounts receivable to finance, which is equivalent to bringing a considerable income to the core enterprise (buyer) in disguise. Therefore, the core enterprise needs an enterprise self-help platform to help with the confirmation work.
3. Insiders of factoring company
When the financing party (seller) applies for the transfer of accounts receivable, it will involve many links, such as rating, project approval, optimal adjustment, credit granting, etc., for the core enterprise (buyer) to evaluate whether to carry out this business. Therefore, the internal approval process will involve many parts, from account manager-risk control manager-legal manager-credit evaluation Committee member -CEO, forming a set of standardized evaluation work.
Therefore, the business platform is required to conduct a series of online operations. Facts have proved that most factoring companies with good business conditions and considerable profits have online factoring systems. As a leading provider of financial technology solutions, Rongdu Technology has developed a factoring business system solution for factoring business and internal control process. By combining the three management sections of website client, financial management and external system docking, it has realized the informationization and intelligent management of factoring business.
The system is a management product of financing financial service business based on accounts receivable management and settlement carried out by commercial factors, which can quickly help commercial factors to establish enterprise accounts receivable pledge financing information management system, make factoring business fully online and improve the work efficiency of all aspects of factoring business. The product realizes risk monitoring, all-round management of supplier files, credit rating setting and so on. And perfect post-loan function design, including extension processing, early repayment, due settlement, loan repurchase, bad debt processing, overdue collection and other functions, to meet the needs of all-round factoring scenarios.