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Analysis on Demands of Cash Management
● Client requires the bank to offer real-time notice on affirmation of the payment, detailed information of product order and the complete account information including cash payment and trans-bank collection.
● Client requires the bank to offer financing support to its agents in order to promote the timely reflow of the accounts receivable.
● Client requires the bank to offer some services like professional instrument identification, keep and fund financing aiming at a lot of commercial instrument receivable.
Cash Management Solution
1. Introduction of Whole Thought
| Offer the timely affirmation of the incomes from the payments for the goods through the enterprise's ERP system and ICBC's bank-enterprise interlink mode so as to realize the organic combination of fund flow, logistics and information and enhance the cash flow management of the Clients. |
Information |
| Financing |
Through "domestic letter of credit" and "accounts receivable of core supplier" factoring, offer trade financing and speed up the fund turnover of the enterprise. |
| Offer note custody service, and establish "note fund pool" of the enterprise so as to realize the maximized use of the note funds |
Note |
2. Account Information Service
In the aspect of account collection information, through "bank-enterprise direct link" between client's ERP system and ICBC's host computer system, ICBC helps the client realize the rapid affirmation on consistency of the account collection and order, organic integration of fund flow, logistics and information flow, and fully enhance the turnover efficiency of the funds.
| Account information |
Order information |
Detailed checking account |
| ? Real-time affirmation reminding for the account balance |
? ERP-bank
? Bank-enterprise interlink |
? Collection record enquiry |
| ? Text message of mobile phone
? E-mail |
? Order information match |
? Day-end checking account service |
(1)Real-time Notice on Affirmation of Payment
The enterprise only needs to sign a account messenger service agreement with ICBC, the any change and the change condition of the balance of the accounts of the enterprise will be sent to the number of the moblie phone appointed by the clients through the text messages of the mobile phone so as to help the enterprise hold the conditions of incomes and expenses of the accounts in real time and whereby effectively control the logistics.
● Balance Change Reminding of unit settlement account
● Sign the agreement on Balance Change Reminding Service with ICBC.
● The information about the change of the balance will be sent to the number of the mobile phone appointed by the clients through the text messages of the mobile phone.
● Know the change of account balance in real time
(2)Detail Enquiry and Checking Account
Through the order information in ERP system the enterprise realizes the collection information enquiry and account check; through ICBC system connection, the enterprise can download its all order information like order number, invoice number, the name of the purchaser, the amount of the invoice so as to automatically match with the account information downloaded from ICBC, supplement the order information and timely know conditions of all collections.
| Enterprise can enquire collection information that has been matched successfully through ERP |
At the end of the day, ICBC offers order-collection checking account information to enterprise |
| ? Product code |
? Only one order collection information that has been matched successfully |
| ? Number of purchased goods |
? Order collection record that has been matched successfully but matched with multiple information |
| ? Name of the purchaser |
? Further verification by company |
3. Trade Financing Service
Aiming at the feature of the enterprise that it owns many agents, ICBC offers trade financing service to the agents of the enterprise so as to improve the fund conditions of the agents, meanwhile speed up the reflow of the accounts receivable of the enterprise and help the enterprise and its agents further enhance the cooperation relationship and grow up together.
| Domestic letter of credit |
Repurchase accounts receivable factoring |
| ? Introduce logistics company to control logistics |
? Speed up the enterprise' s reflow of the incomes from goods |
| ? Assured by enterprise |
? The payment conditions of agents can widen to increase the fund flow |
| ? Agents open far day domestic letter of the credit with the line of the enterprise |
Note discount service |
| ? domestic letter of the credit financing
Domestic letter of credit negotiation, speed up the reflow of the incomes from goods
The far day payment of the agents to improve their fund conditions. |
? Discount the notes receivable from agents |
| ? Speed up the cash flow of the agents |
4. Instrument Service
Due to the large sales of the enterprise, the headquarters and branches often keep a lot of instruments receivable. ICBC offers instrument custody service and helps client keep the instruments after identification. The enterprise can determine to discount or transfer the instruments held in accordance with the whole fund condition of the group in order to enhance the efficiency of the fund use. The enterprise also can impawn all premature instruments that kept by ICBC and establish an "instrument pool", by which the enterprise can apply for whole credit-awarding and obtain credit line so that it can go through various financing business flexibly. The "instrument pool" can centralize all impawned instruments including instruments from the headquarters and branches so that the enterprise can obtain more credit line and more financing chances as well as fully enhance the use rate of the instrument funds.
| Note custody |
Note pool |
| ? Entrust ICBC with management of notes receivable |
? Establish note pool with the notes entrusted by ICBC |
| ? ICBC identifies the notes |
? Obtain the issuing line or credit line with the amount of the note pool |
| ? Handle the discount, commission collection, impawning and transfer online. |
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Plan Implementation Effects
Through offering comprehensive cash management service, ICBC assists client to continually purse higher fund use rate, more optimized business process, lower fund cost and more fund earnings.
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