Definition: receivables pledge loan refers to the short-term loan offered by Jiutai Rural Commercial Bank to the borrower, who uses his legally owned receivables collection right that he has final disposition and has been confirmed by the payer as the repayment guarantee.

Serving object: the manufacturing and sales enterprises that have a lot of receivables caused by long time sales on credit and are short of real estate, but need funds to enlarge the scale of production and sales.

Advantages of product:

To the seller (creditor of the receivables)

1. Receivables pledge financing can make the future cash flow to be realized in advance, to speed up the turnover of working capital.

2. To meet the financing need of medium-sized and small enterprises that are lack of the traditional mortgage (pledge) guarantee sources.

3. Simple procedures and efficient financing.

To the buyer (debtor of receivables)

1. After pledging the receivables to the bank, the buyer’s sensibility on the payment term of the receivables is released, providing the buyer with more competitive condition of payable at usance and increasing the efficiency of funds.

2. To stabilize the upstream supply channel without additional cost.

Application requirements:

1. The subject qualification or operational entity is lawful and effective, with full license of the trade;

2. Having opened basic or general settlement account with Jiutai Rural Commercial Bank;

3. Being able to provide the receivables pledge according with the requirement of Jiutai Rural Commercial Bank, with the capacity to repay on time;

4. Having good cooperative relation with the debtor of the receivables, with complete transaction record and without significant breach of contract and economic dispute;

5. In good credit status, without significant poor credit record;

6. Other conditions required by Jiutai Rural Commercial Bank.