Bank of China (BOC) has launched a new trade finance system to support industry supply chains in the Shandong-province city of Jining.
On 28 October the Jining branch of BOC completed its first trade finance operation using the new municipal-wide system in Jining, to provide supply chain financing for a company and its upstream enterprises in the city.
The supply chain finance product launched by BOC involves the extension of credit via the core company to satisfy the financing needs of upstream small and medium-sized enterprises (SMEs).
“The implementation of this operation achieves a joint win for the core enterprise and its suppliers, using the strength of finance to support the high-quality development of enterprises”, BOC said.
State-owned media said that the launch of the system would help to “further diversify the supply chain finance products offered by banks and provide more convenient channels for small and medium-sized enterprise financing.”
“In recent years, supply chain financing has continually developed…while micro, small and medium-sized enterprises are a key link in supply chains, because of their small size and inadequate levels of collateral they face considerable difficulties in obtaining credit support from banks.
“The launch of supply chain finance greatly helps to resolve the financing difficulties of SMEs.”
BOC’s Jining branch said that in future it would “continue to effectively perform supply chain finance work, use the strength of finance to aid the stable operation of enterprise industry supply chains, and make a contribution to the high-quality development of the Jining economy.”