Credit Businesses
(I) Self-operated loan services
1. Working capital loans
SFC issues working capital loans to member companies to cover their shortage in the working capital for production and operation. Working capital loans include general working capital loans and working capital revolving loans. If there are demands for foreign exchange funds, SFC can handle short-term working capital loans in foreign exchange or working capital revolving loans in foreign exchange.
Features
- Rapid loan approval and flexible service modes;
- Flexible loan period, allowing withdrawal based on real loan usage schedule and prepayment with the consent of SFC.
2. Fixed asset loans
SFC extends fixed asset loans to member companies to accommodate their long-term capital needs in engineering construction, technology, equipment procurement and installation in connection with infrastructure or technical renovation projects. Fixed asset loans include capital construction loans and technical renovation loans.
Features
- · Rapid loan approval and flexible service modes;
- · Flexible loan period, allowing withdrawal based on real loan usage schedule and prepayment with the consent of SFC.
3. Consortium loans
Consortium loans, also known as syndicated loans, refer to the loans initiated by SFC or a bank, participated by several banks, and issued to the same borrower under the same loan agreement according to agreed conditions.
Features
- · Joint loan extension by financial institutions with capital strength;
- · Flexible loan period, allowing withdrawal based on real loan usage schedule and prepayment with the consent of SFC.
4. Mergers & Acquisitions Loan
A loan made by SFC to the acquirer or its subsidiaries, used by the borrower to pay the transaction price and fees of the acquisition.
Features
- · Rapid loan approval and flexible service modes, meet specific loan demands;
- · Allowing withdrawal based on real loan usage and prepayment with the consent of SFC.
(II) Entrusted loan business
It refers to the business that SFC, under the entrustment of member companies, issues, monitors the usage and assists the collection of funds as per the borrower (members-only), purpose, amount, period and interest established by the principals.
Features
- · Helping the principals broaden the channels to use idle money and increasing capital gains;
- · Leveraging on SFC's strong points in improving the risk prevention system and enhancing capital management;
- · Simple and convenient formalities with lower handling charges.
(III) Buyer credit business
It refers to the credit business that in the industrial chain transaction whereby member companies are the sellers and external buy-side enterprises are the buyers, SFC provides financing for eligible external buyers to purchase the products of member companies.
Features
- · Help solve financing problems, ease financial pressure;
- · Help expand business scale, enhance competitiveness;
- · Offer favorable loan rates, reduce financial costs;
- · Enhance stickiness between two parties, stabilize cooperative relationship.
(IV) Factoring business
This business covers comprehensive financial services provided by SFC for the creditors of member companies who transfer their receivables of the debtors of member companies to SFC, including the collection and management of receivables, full protection against bad debts and financing.
Refactoring refers to that a commercial factoring company transfers the receivables and all the rights under the receivables to SFC, which provides comprehensive financial services, including trade financing, receivables management, receivables collection and bad debt guarantee.
Features
- · Eligible for preferential rates below market average level;
- · Up to 100% of net accounts receivable;
- · Quick collection of advances, solve financing problems;
- · Enhance stickiness between two parties, stabilize cooperative relationship;
- · Build liquidity position, provide risk protection.
(V) Guarantee business
SFC's guarantee business refers to SFC accepts the requirements of member companies under the transaction, contractual relationship, economic relationship and other transactions, and makes the written commitment on payment guarantee to the other party of the transaction concerning the fulfillment of some responsibility or obligation in the transaction, i.e., it will undertake the responsibility for paying certain amount or paying economic compensation within a specific period. SFC's guarantee mainly includes bid bond, performance bond, engineering maintenance bond, payment bond, advance payment bond, Customs Guarantee and retention guarantee, among other types.
Features
- · Commercial credit replaced by bank credit facilitates the fulfillment of contractual obligations;
- · Extensive range of application and diverse and flexible types meet the credit enhancement demands of member companies;
- · Lower handling charge saves financial expenses.
A loan made by SFC to the acquirer or its subsidiaries, used by the borrower to pay the transaction price and fees of the acquisition.
Features
- · Rapid loan approval and flexible service modes, meet specific loan demands;
- · Allowing withdrawal based on real loan usage and prepayment with the consent of SFC.
(II) Entrusted loan business
It refers to the business that SFC, under the entrustment of member companies, issues, monitors the usage and assists the collection of funds as per the borrower (members-only), purpose, amount, period and interest established by the principals.
Features
- · Helping the principals broaden the channels to use idle money and increasing capital gains;
- · Leveraging on SFC's strong points in improving the risk prevention system and enhancing capital management;
- · Simple and convenient formalities with lower handling charges.
(III) Buyer credit business
It refers to the credit business that in the industrial chain transaction whereby member companies are the sellers and external buy-side enterprises are the buyers, SFC provides financing for eligible external buyers to purchase the products of member companies.
Features
- · Help solve financing problems, ease financial pressure;
- · Help expand business scale, enhance competitiveness;
- · Offer favorable loan rates, reduce financial costs;
- · Enhance stickiness between two parties, stabilize cooperative relationship.
(IV) Factoring business
This business covers comprehensive financial services provided by SFC for the creditors of member companies who transfer their receivables of the debtors of member companies to SFC, including the collection and management of receivables, full protection against bad debts and financing.
Refactoring refers to that a commercial factoring company transfers the receivables and all the rights under the receivables to SFC, which provides comprehensive financial services, including trade financing, receivables management, receivables collection and bad debt guarantee.
Features
- · Eligible for preferential rates below market average level;
- · Up to 100% of net accounts receivable;
- · Quick collection of advances, solve financing problems;
- · Enhance stickiness between two parties, stabilize cooperative relationship;
- · Build liquidity position, provide risk protection.
(V) Guarantee business
SFC's guarantee business refers to SFC accepts the requirements of member companies under the transaction, contractual relationship, economic relationship and other transactions, and makes the written commitment on payment guarantee to the other party of the transaction concerning the fulfillment of some responsibility or obligation in the transaction, i.e., it will undertake the responsibility for paying certain amount or paying economic compensation within a specific period. SFC's guarantee mainly includes bid bond, performance bond, engineering maintenance bond, payment bond, advance payment bond, Customs Guarantee and retention guarantee, among other types.
Features
- · Commercial credit replaced by bank credit facilitates the fulfillment of contractual obligations;
- · Extensive range of application and diverse and flexible types meet the credit enhancement demands of member companies;
- · Lower handling charge saves financial expenses.