Definition

Order financing refers to a financing product that the borrower can apply for working capital loan from SRCB upon presentation of valid commercial contract signed with its counterparty that can be recognized by SRCB, and agreement to repay SRCB with the receivable under this contract. Order financing is exclusively for the borrower to purchase raw materials and accessories to execute its commercial contract with its counterparty.

Features

This product resolves the difficulty usually happens on high-tech SMEs that they can¡¯t get credit facility from banks due to lack of tangible assets as collateral.

Once the borrower has entered into a valid order as recognized by SRCB, it can get the future cash receivable for purchasing and production, thus perform the commercial contract.

Target customers

High-tech SMEs that own proprietary intellectual property rights and pattern rights. Both parties of the commercial contract should have sound credit record, and have the capability to perform the contract. The borrower should present track record of successful order for SRCB to investigate and verify. Single contract value can not be too small. The borrower¡¯s working capital cycle is normal, and it accepts SRCB¡¯s supervision on the funding.