What is warehousing financing?

As an innovative business, warehousing financing has achieved considerable results not long after its launch. It is understood that some large domestic logistics companies such as COSCO, China Storage and Sinotrans have also launched their own warehousing financing business.

During the interview, the reporter learned that there are three main reasons why warehousing financing is sought after by many companies. First of all, this business model is extremely convenient for enterprises and effectively revitalizes corporate inventories. Li Wenjie said that after the enterprise is assessed and certified, and the goods are shipped and supervised, the bank will provide loans to the enterprise based on the warehouse receipts provided by the third-party warehousing company, that is, the logistics enterprise. The enterprise can apply for approval and receive the loan as soon as 12 Completed within hours. Moreover, this fast model will not significantly increase corporate financing costs. According to estimates, under the warehousing financing model, the fees charged by third-party warehousing companies increase the actual interest rate paid by the enterprise by 0.3 to 0.5 percentage points based on the bank loan interest rate.

Guangdong Nanchu Warehousing Management Co., Ltd. has further extended the concept of warehousing in space. Li Wenjie said, "For companies, placing inventory in designated warehouses and obtaining loans can indeed solve the problem of corporate funds. problem. However, this brings great inconvenience to enterprise production and increases production costs. Therefore, we propose that enterprise-owned warehouses be regarded as public warehouses, and third-party special regulatory agencies will be stationed in enterprise warehouses for supervision. , allowing companies to obtain bank loans without affecting their production and operations." After this business model was launched in 2002, many domestic warehousing companies have followed suit.

While warehousing financing effectively solves the financial problems of enterprises, its second important function is to avoid product price risks. As we all know, futures have the function of price discovery. At present, our country has launched futures products on grain, non-ferrous metals and other products, but there are still many bulk products that have not yet launched futures products, and warehousing financing business can play a similar role. For example, when some companies expect that the price of refined oil products will increase, they can provide storage pledge loans for oil products. This ensures that they can reap the benefits of rising oil prices while avoiding the recent poor cash flow.

The third function of warehousing financing business is to effectively solve the problem of capital connection between buyers and sellers of enterprises. In the context of market uncertainty and information asymmetry, both parties to the transaction dare not rush to release goods or pay for goods. After the introduction of warehousing financing, in a real trade context, the buyer uses future warehouse receipts to apply for a loan from the bank and pledge the goods to be purchased. The bank can advance the payment to the seller on behalf of the buyer, thereby promoting the smooth progress of the transaction. This process also allows warehousing supervision to further extend to intermediate process supervision, transportation supervision and other links.

Based on these advantages, warehousing financing is being accepted by more and more companies. Experts believe that Tianjin has many processing and manufacturing companies, and making full use of this new logistics financial service will greatly promote the development of these companies and even the industry.