Definition: Domestic factoring business means that the seller (creditor) transfers, the receivables formed by the commodities sold and services provided by the domestic seller to the domestic buyer (debtor) or formed by other causes, to Jiutai Rural Commercial Bank, on the basis of which Jiutai Rural Commercial Bank shall provide the seller with a series of comprehensive financial services, such as receivables factorage financing, or commercial credit standing investigation, or  receivable account management and collection of receivables or assumption of the buyer’s credit risks.

Serving object: it is suitable mainly for the domestic trade with settlement on credit. The applicant shall have good credit record and perfect receivables management system, with good financial status. The products managed shall be of steady quality and high degree of standardization, easy to peep.

Advantages of product:

To the seller (creditor of receivables)

1. To convert the receivables into cash, to rise the turnover rate of the receivables, optimize financial statement and to save the managing cost of the receivables.

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, reducing the occupation of funds.

Application requirements:

1. The buyer and seller shall be domestic business entities and other economic organizations registered according to law;

2. The buyer accords with the state industrial policies and loan policy of Jiutai Rural Commercial Bank, with steady product and service qualities, smooth marketing channels, strong contractual capacity, sound and standard internal financial and receivables management systems, with the ability to buy back the receivables, having opened special account for factoring management with Jiutai Rural Commercial Bank;

3. The buyer has a standard operating management system with enough cash flow and the ability to pay in full the receivables on time, without malicious default on the seller’s payment and other bad record;

4. The sales contract does not include the clauses to forbid transfer, consignment sales and reservation;

5. Other conditions required by Jiutai Rural Commercial Bank.