Some cities have promulgated the Measures for the Pilot Management of Commercial Factoring Industry, which stipulates that the working capital of commercial factoring companies is indirect financing such as registered capital and bank loans, direct financing such as issuing bonds, and borrowing short-term foreign debts and medium-and long-term foreign debts. In order to prevent risks and ensure business safety, the risk assets of a commercial factoring company shall not exceed 10 times of the company's net assets.
Risk assets (including guarantee balance) are determined according to the total remaining assets of the enterprise after deducting cash, bank deposits and government bonds.
It is expected that bank credit, private equity funds and asset securitization will become the main financing channels for factoring companies in the future.
I. Commercial Factoring and Cooperative Banks
The cooperation between commercial factoring and banks can take the form of credit or re-factoring. According to the credit rating of commercial factoring companies, banks can grant certain credit lines. Within the credit limit, funds can be recycled.
(A) Re-factoring model
Factoring means that the factoring company transfers the seller's accounts receivable to the bank again, and the bank provides financing to the commercial factoring company, which then transfers the money to the seller's bank. After the accounts receivable expire, the seller transfers the payment received by the buyer to the commercial factoring company, which returns it to the bank for financing.
In the process of re-factoring, banks can prevent risks in the whole process before, during and after lending, including the approval of commercial factoring companies, the approval of sellers of basic transactions, the evaluation of buyers, the verification of the authenticity of trading background, the setting of collection accounts, and the monitoring of capital flow.
Re-factoring usually exists between banks and commercial factoring companies as a credit enhancement model, and it is a financing method of factoring companies. In essence, it is the re-assignment of creditor's rights, that is, after the enterprise transfers its creditor's rights of accounts receivable arising from trade to the factoring company, the factoring company transfers the transferred rights and obligations to other factors.
The bank's strict risk control system enables high-quality accounts receivable to be re-transferred, the liquidity of factoring companies to be supplemented, the operational capacity to be improved, and the factoring business to be further developed, so that enterprises in the real economy can get more services.
Specifically, banks usually transfer the creditor's rights in some mature factoring products, which are aimed at specific industries and sub-industries, with standardized processes and controllable risks.
(2) Double factoring mode
International factoring is usually double factoring. Under the dual factoring mode, the exporter signs an agreement with the factor at the exporter's location, and the export factor and the import factor also sign an agreement to entrust the agency business with each other. Export factors provide factoring services according to the needs of exporters.
(C) Bank agency model
Therefore, in practice, factoring companies often adopt the strategy of cooperation with banks. The two sides can form a cooperation mode, that is, the insurance bank is dominant, and the factoring company operates as the agent and distribution channel of the bank, thus expanding the business volume and achieving a win-win situation.
To carry out supply chain finance business, banks need inventory pledge, transfer or accounts receivable pledge to control risks, but banks do not have enough manpower to supervise inventory and manage accounts receivable, and banks are unwilling to do such laborious and time-consuming work.
According to the needs of banks, factoring companies accept the entrustment of banks to supervise inventory, manage accounts receivable and provide corresponding services, so that banks can focus on their credit business, strengthen business risk control through division of labor and cooperation, improve business efficiency, promote financial services for small and medium-sized enterprises, and achieve a win-win situation for factoring companies and banks.
Second, commercial factoring and third-party platforms.
The vigorous development of e-commerce provides an opportunity for the expansion of commercial factoring business; Commercial factoring can provide commercial factoring services beneficial to both buyers and sellers through cooperation with third-party platforms.
In e-commerce, in order to avoid the dishonest behavior of buyers and sellers, third-party payment institutions
If the seller has financing needs, the factoring company only needs to cooperate with the third-party payment company for process control, so the financing credit risk is low. Ant loan provides order loans to Taobao merchants. The loan is based on the transaction order amount delivered by the seller's shop, and is not confirmed by the buyer. The loan will be repaid automatically after the buyer confirms it.
Commercial factoring companies provide financing for air tickets receivable. After the passenger purchases the air ticket, the air ticket agent pays the air ticket price to the airline through the International Air Transport Association, which takes about 15 days. At the same time, airlines need funds. Factoring companies and IATA will issue factoring financing after confirming the receivable air tickets, and recover the financing after receiving the air tickets.
The business model of accounts receivable process monitoring needs the close cooperation of third-party companies. Without the third-party company to provide accounts receivable information and transfer the money to the designated account, the business cannot be carried out. Cooperation with third-party companies is the key to this business model.
Three. Commercial Factoring and Asset Securitization
Asset securitization means that factoring companies gather accounts receivable transferred by various sellers, which lack immediate liquidity but have predictable and stable future cash income flow, form a pool of accounts receivable assets, and then credit these assets to make them into securities that can be circulated and sold in the securities market.
Taking accounts receivable as "basic assets" can be used as asset securitization, which opens up a new way for commercial factoring companies to refinance. Commercial factoring companies obtain "basic assets" through the transfer of accounts receivable, and then brokers act as managers, and perform filing procedures in accordance with the management method of asset securitization to enhance credit.
Related Q&A: Related Q&A: How to do factoring financing well? I. Overview of due diligence
For traditional factoring business, understanding the project is the premise of all business, and it is also one of the basic jobs of front-end market personnel. Facing the surging projects every day, facing the complicated industries and enterprises with mixed quality, how to quickly and accurately judge whether the target business has the possibility of factoring operation, whether it meets the ready-made business products, and what details can judge the possibility of fraud need to be carefully analyzed and summarized, so as to improve work efficiency, better tap the effective market, and avoid unnecessary workload brought by front-end mistakes to the middle and back offices to the greatest extent.
The following is a brief overview of due diligence investigative steps, part of which belongs to personal experience, and the analysis is not comprehensive. I hope everyone can give me suggestions and help me improve.
Second, basic due diligence.
1, actual controller interview
At present, private enterprises occupy an important position in the whole social economy in terms of quantity and volume. Compared with state-owned enterprises and central enterprises, private enterprises generally have compensation problems such as short establishment time, small scale, tight capital chain and lack of mature fund management system, especially in the market where factoring business focuses on development.
Different from the state-owned enterprise system, the core business and finance of a large number of private enterprises are controlled by actual controllers. Although some large private enterprises have formed a mature management team, the actual controller's control over the general direction of the enterprise still determines the future development of the enterprise, so it is particularly important to interview the actual controller of the private enterprise.
The actual controller of a private enterprise is generally the largest shareholder of the enterprise, and most of them have existed since the establishment of the enterprise, and are responsible for the core business and payment decisions of the enterprise. Because the business changes and personnel changes since the establishment of the enterprise are very clear, interviewing it is the most direct way to understand the historical evolution of the enterprise. The key contents of the interview can be referred to as follows:
2. The origin of the establishment of the enterprise and the changes of shareholders over the years.
Analysis of the current industry in which the enterprise is located, judgment of the market position of the enterprise, and prediction of the future of the industry and the enterprise.
Details of upstream and downstream customers, years of cooperation, ways to establish and maintain relationships with core upstream and downstream customers, etc.
Thoughts on the future development direction of enterprises, such as whether there are listing plans and specific measures, the direction and methods of expanding the market, etc.
The principles to be followed are: first, understand the whole context of the enterprise from its emergence to development on the time axis, and judge whether it is a shell bought for financing; Secondly, put the enterprise into the whole industry and even the market, and see the actual controller's grasp and judgment of the overall situation. An entrepreneur who is short-sighted and has no overall situation can hardly feel at home in the choppy market. Then find several points that are crucial to enterprises in the industrial chain, that is, the upstream and downstream of the core, and see the boss's control and negotiation status of these enterprises, so as to judge whether the enterprises can operate normally and benign in a short time; Finally, go back to the timeline and see if he has any deeper and more grand ideas about the enterprise, and how many grand elements these ideas have.
On the other hand, it is necessary to know the personal situation of the actual controller through various channels, including but not limited to family situation, marriage situation, assets situation, hobbies, criminal records, personal credit information, etc. A boss who is addicted to alcohol, gambling or has a chaotic private life will still bury many hidden dangers for the enterprise even if he has excellent resources and extraordinary courage, and once these hidden dangers break out, the consequences will be fatal.
Private entrepreneurs have different qualities and characteristics. It is also necessary to analyze specific problems to see what type of entrepreneur he belongs to. Technology-based, resource-based and diligent entrepreneurs should have different investigation focuses to avoid making survey errors by generalizing.
3, material collection
Data collection is the next contact part of the enterprise, and there are many detailed functions that can make the enterprise understand more clearly. The following are some characteristics of material collection.
In a short time after the material demand application was issued, the enterprise provided a set of detailed and complete materials. Most of these enterprises have dealt with banks before, and the managers have prepared a full set of materials in advance. This kind of enterprise is a mature case in the field of financing, so it will pay more attention to the cross-checking relationship between the materials provided to avoid major inconsistencies. The financial statements provided also meet the needs of bank rating, so special attention should be paid to the comparison with the actual situation, including but not limited to the comparison between the cash flow statement and the bank statement, the comparison between the fixed assets and the actual situation, the number of employees payable, the social security payment, etc.
After the enterprise submits the supplementary materials, the reply is slow or unable to provide them. It may be because the staff of the enterprise don't know the enterprise deeply enough, and the loss of some information also reflects the management level of the enterprise. For an enterprise that has survived for many years, this will also reduce points to some extent.
Under normal circumstances, enterprises need to provide complete basic licensing materials, financial information, complete business materials, actual controller related materials, etc. , slightly different according to different types of enterprises.
Three. Due Diligence Investigation
1. The audit report and financial statements are complete and compliant.
Financial data is an important medium to analyze the short-term operating results of enterprises. Although the current financial statements of enterprises contain a large degree of moisture, it is undeniable that these financial data do play an important role in judging enterprises.
Generally speaking, for enterprises that have survived for many years, it is necessary to provide financial reports audited by accounting firms in the past three years, issue unqualified audit opinions on the affairs, and disclose all the topics of the reports in detail. For enterprises that have not been audited or audited in a mere formality, it is especially necessary to investigate their financial standardization.
Be clear about the data in financial statements, such as cash, accounts receivable, inventory, fixed assets, income, profits, etc. Secondary account details should be obtained.
2. Check the relationship between the reported data and the actual situation.
As a direct embodiment of the production and operation of enterprises, financial statements reflect the operating conditions of enterprises from the past to the present, which is of great significance. The attitude of some enterprises towards financial statements is a mere formality or deliberate fraud, which leads to deviation from the actual business situation and affects the investigation effect. Some common questions are:
False high of fixed assets and inventory: In order to increase the number of assets and improve the quality of assets, enterprises often tamper with some asset subjects, and false high of fixed assets and inventory is one of the means. In this case, it is necessary to carefully check the fixed assets and inventory on the spot, pay attention to reviewing their property rights, and get a fair price through a third party organization to prove the authenticity of the statement.
The financing scale does not match the financial expenses: the short-term loans of enterprises are mainly debt financing from formal financial institutions such as banks, and the financial expenses are the difference between loan interest and deposit interest. According to the market interest rate level, enterprises with high financial costs should consider the possibility of private lending.
False high income and false high (low) profit: enterprises falsely report their income and profits out of their own image propaganda. At this time, they should carefully read the collection records of enterprises to support the income data, and the profit rate should be compared with the general market level or the profits of large enterprises like listed companies, and the differences should also be carefully analyzed. In addition, the low profits of enterprises are mostly due to tax avoidance considerations, which can be understood within a reasonable range, but the big difference from the actual situation also shows that enterprises are not benign operations.
3, other materials to help report data.
Other materials supporting the report data include, but are not limited to, bank statements and running details, tax declaration materials, employee social security payment documents, water and electricity rents, bank loan contracts and loan vouchers, business contracts and invoices.
4. Due diligence of main business
Production enterprises mainly investigate the following aspects:
Raw materials: raw materials are the basis of the operation of production enterprises, and the price and acquisition largely determine the survival and development of enterprises. Whether the cooperative relationship with upstream enterprises is stable determines the stability of raw material supply; The negotiation status determines the cost and payment method; Quality control system determines product quality and sales.
Production and processing technology: advanced production and processing equipment and the quality of employees determine whether an enterprise can produce and process products superior to the average market level, and then determine its position in the market. Advanced equipment and excellent technicians should have low substitutability, equipment should have the advantage of channel purchase, employees should be the backbone of the company, and the company's own patents and other factors also greatly add points to it.