Supply chain finance gets tech edge, to boost private

Chinese commercial banks are strengthening supply chain finance with the help of tech

nology to solve difficulties at private enterprises, especially small and micro-sized businesses.

Supply chain finance allows a supplier to sell its invoices to a bank at a discount as soon as they ar

e approved by the buyer. This allows the buyer to pay later and the supplier to secure its money earlier.

China Minsheng Banking Corp, a national joint-stock commercial lender – a business entity in which shares

of the company’s stock can be bought and sold by shareholders – is providing comprehensive financial and nonfin

ancial services to private enterprises in the upstream and downstream supply chains.

Downstream supply chain management refers to coordinating the flow of information and goods with clients. It cont

rasts with upstream SCM, which involves coordinating buying activities with suppliers.

The Beijing-based bank has offered solutions adapted to the features and needs of private companies in six industr

ies, including home appliances and pharmaceuticals, since setting up a supply chain finance department last year.

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