|
Background of Enterprise
Taking production and operation of flue-cured tobaccos and cigarettes as its main business, a tobacco backbone enterprise is devoted to diversified operation and trans-region, trans-industry and trans-ownership comprehensive development all along. Presently the enterprise has expanded to a large-scale comprehensive enterprise group consisting of 14 enterprises including 5 cigarette enterprises, 3 city/prefecture-level tobacco companies, 5 professional function companies and 1 international tobacco trade company with over RMB ten billion Yuan of deposits and loans respectively.
The existing fund management mode of the enterprise is relatively loose and every member unit is just doing things in its own way with nonstandard financial management. In a long period, the enterprise collected the sales incomes of the cigarettes from the agents in the form of settlement via bank with purchaser's acceptance, and the payments of the sales incomes of the agents was often in arrears, so the enterprise hopes bank resolve the problem. Due to the wide business scope, multiple branches, and frequent business trips, the financial persons need to handle a lot of reimbursement business every day. In order to change the situation, the enterprise plans to raise the funds and establish a fund management center and carry out centralized financial and fund management for all subordinate member units.
Analysis on Demands of Cash Management
● The client needs to build a fund management platform design reasonable account structure and fund flow for the enterprise. In the aspect of fund income, the client needs to collect the funds of subordinate member units to the fund management center. In the aspect of fund expenditure, the client requires the bank to pay for expenditures in advance and settle with the fund management center at the end of the operation of the day.
● The client needs to resolve the demand on a large sum of cashes in current reimbursement business.
● The client needs to resolve the problem of the payments in arrears of agents.
● The client needs to fully and timely find out the account information of its member units.
| Centralized fund management |
Financial service |
Supply chain finance |
Information service |
| build a fund management platform, realize timely collection of the income funds of subordinate member units. In the aspect of fund expenditure, the client requires the bank to pay for expenditures in advance and settle with the fund management center at the end of the operation of the day. |
Reimbursement for business trips needs a lot of cash, hope bank simplify procedure and control the risk. |
Resolve the problem of the payments in arrears of agents. |
Fund management center needs to fully and timely find out the account information of its member units. |
Cash Management Solution
| Demands of the enterprise |
Concrete demands |
Solutions |
| Centralized fund management service |
Income: collect the funds from the incomes of subordinate member units in time Expense: bank pays in advance and then settle with the fund management center at the end of the day |
Establish fund management frameworks of "separation of expense from income" and intraday overdraft of expenditure account |
| Financial service |
Resolve the reimbursement of the expenses of business trips |
The financial department of the enterprise/doubt-directional POS |
| Supply chain finance service |
Resolve the problem of the payment in arrears by agents |
Domestic letter of credit negotiation/domestic factoring |
| Information service |
Fund management center knows the account information of the member units in time |
Comprehensive complete account information service |
ICBC's Cash Management Solution can be divided into 4 sub-solutions: fund centralization solution; financial management solution; Supply Chain Finance Solution; information solution.
1. Centralized Fund Management Services
2. Financial Service
The financial reimbursement plan proposed by ICBC is based on the consumption of business card or personal card, according to the plan, the reimbursement will be transferred into the business card or personal card of the person requiring reimbursement in terms of items or in batches through ICBC Corporate Account Room or special finance products like Bi-directional POS.
3. Information Service
ICBC can offer account information report, including balance, today's data, historical data and checking account information regularly. Besides complete account information report, ICBC can also deliver the income and expense of the certain account to the enterprise in the form of real-time reminding through text message of mobile phone or E-mail.
4. Supply Chain Finance Service
In order to resolve the problem of payment in arrears of agents, ICBC can offer two solutions: Domestic Letter of Credit and Accounts Receivable Factoring.
Domestic Letter of Credit is a settlement instrument introduced by ICBC in order to help the two parties of the domestic transaction prevent the transaction risk in the transaction. The agents can apply for the opening domestic Letter of Credit from ICBC, and the enterprise can deliver the goods and submit the notes in accordance with the Letter of Credit, meanwhile, the enterprise also can apply for the negotiation of the Letter of Credit from the bank, after received the notes, the issuing bank can pay relevant funds, and the agents can get relevant notes and handle the procedure of picking up the goods after the payment.
Besides Domestic Letter of Credit, ICBC offers Accounts Receivable Domestic Factoring business to the clients, i.e. bank purchases the accounts receivable of the enterprise to assist the client in timely reflow of the funds.
Plan Implementation Effects
|
