Detailed explanation of China Development Bank’s cooperation zone financing policies and cross-border e-commerce enterprise financing strategies

Financing services provided by China Development Bank for cooperation zones

In order to promote the development of overseas economic and trade cooperation zones, the China Development Bank has clarified the basic conditions for priority financing of cooperation zones in accordance with the requirements of the “Confirmation Assessment and Annual Assessment Management Measures for Overseas Economic and Trade Cooperation Zones” issued by the Ministry of Commerce and the Ministry of Finance. Specific service measures include:

• Key priority support: Provide key support to cooperation zone projects that have passed the confirmation assessment;
• Selective support: We will also support projects in the cooperation zones under construction that are of common concern to the governments of the host countries of the cooperation zones;
• Active tracking: China Development Bank will actively track other planned cooperation zone projects;
• Innovative Financing Model: Explore various models such as relying on the credit of overseas financial institutions, the pledge of the project itself and other assets, and the pledge of land transfer receivables to provide financing support for enterprises implementing the cooperation zone;
• Diversified financing services: Provide financing services to enterprises in the park through on-loans, syndicated loans, etc.;
• Special support for the African region: Provide investment and financing services to the African regional cooperation zones through a combination of investment and loans, and provide special loan services for African small and medium-sized enterprises to enterprises in the park.

Analysis of financing paths for cross-border e-commerce companies

With the rapid development of the cross-border e-commerce industry, many companies are facing financing problems. China Merchants Capital has layouts in VC, PE and industrial funds, and pointed out that in addition to cross-border listings through backdoor listings, several companies have successfully listed on the New Third Board. However, for enterprises, the New Third Board is not the end, and future financing capabilities are crucial.

Financing strategies for “small but beautiful” companies

For super sellers with tens of thousands of products, capital parties pay more attention to their operational management efficiency. For example, whether to adopt the direct mail small package or overseas warehouse model, what is the inventory turnover rate, and what is the cash flow situation. For “small but beautiful” companies that focus on a certain field and achieve excellence, they need to clearly demonstrate their core competitiveness to capital to impress investors.

Reasonable valuation and exit strategy

Companies should not overestimate their own value, but should conduct reasonable valuations based on their ability to grow profitably. In addition, for “small but beautiful” companies with monthly sales between 1 million and 5 million US dollars, it is recommended to consider mergers and acquisitions, New Third Board or IPO as exit channels. Especially through mergers and acquisitions, cooperation with NEEQ-listed companies that share the same philosophy can not only achieve financial freedom, but also provide accountability to the team.

Introduction to types of import trade financing

Import trade financing mainly includes five forms: import bill advance, import bill collection, outward remittance financing, delivery guarantee and overseas payment.

Import bill

Import bill is a short-term financing facility provided by the bank to the applicant on the basis of mastering the rights to import goods under the letter of credit. Applicable to corporate enterprises or units with good financial status and stable settlement business transactions.

Import bill collection

Import collection bill refers to a financing method in which a bank, as a collecting bank, makes external payments on its behalf after receiving the collection documents and releases the documents to customers at the same time.

Outward remittance financing

Outward remittance financing allows importers to pay for imports without using their own funds, and banks provide short-term financing support, which helps accelerate capital turnover and improve financial conditions.

Delivery Guarantee

The delivery guarantee enables importers to take delivery of goods in advance in the absence of original bills of lading, speeding up the circulation of goods.

Overseas payment

For overseas payment, the domestic branch of the bank instructs the overseas bank to pay the payment on behalf of the importer, which is applicable to import business under various settlement methods.

Alibaba uses big data to provide financing and credit

Alibaba provides credit lines to overseas buyers through its big data technology, which not only improves the efficiency of foreign trade transactions, but also reduces costs. In addition, Alibaba also uses cloud computing technology to integrate international logistics resources, simplify many aspects of the foreign trade process, and help small and medium-sized enterprises improve operational efficiency.

The above content is comprehensively compiled from the financing policies of China Development Bank cooperation zones, analysis of financing strategies of cross-border e-commerce companies, introduction to import trade financing types, and relevant reports on Alibaba’s use of big data for financing and credit, aiming to provide relevant practitioners with Comprehensive information reference.