Based on high-quality core enterprises, we have customized a “non-sensing finance” system and provided agency operation services.

文 / 姜菁玲

Edit / Lin Ruby

In recent years, using supply chain finance to solve the problem of financing difficulties for small, medium and micro enterprises has become the focus encouraged by the central government and regulatory agencies. In addition to traditional banks, many large core companies have also set up factoring companies or used other licenses for supply Chain financial business. However, due to the close integration of supply chain financial services such as factoring with the industry, and related to each purchase and sale, there are small, high-frequency, and mass features. The traditional manual operation method has a low input-output ratio, even for core companies. Willing to provide financial services to small, medium and micro enterprises through factoring companies or cooperation with banks. Due to limited staffing, the formation of professional financial teams has a long cycle and a large investment, and it is difficult to effectively carry out the actual work.

The recently contacted Zejin Financial Services, established in 2015, is a “financial services” company that serves financial institutions with financial technology and does not conduct financial business itself. It is mainly factoring companies and financial leasing companies that are core enterprises. And supply chain financial institutions such as cooperative banks provide one-stop supply chain fintech services. … p

Xin Hongjun, co-founder and CEO of Zejin Financial Services, said that in the traditional supply chain financial system, the use of fintech is low, and a series of procedures from confirmation of rights to contract signing are operated manually offline. , The operating cost is high, the overall input-output ratio, and lending efficiency are at a low level. Zejin Financial’s team has the triple genes of finance, industry and technology. On the basis of fitting the procurement and sales processes of large core enterprises, its technology solutions can integrate financial risk control and operation capabilities into the system and use machines. Substitute massive operation work, reduce labor cost, moral hazard and operation error.

Enabling core enterprises with SaaS + operation,

Specifically, Zejin Financial Services tailors an entire online supply chain finance “non-sense financial” system for each high-quality core enterprise, and provides follow-up business operation services. The Zejin system can be connected to ERP, OA, WMS, SRM, etc. of the company, and it can control the cash flow of purchase and payment by docking with the bank cash management system, combined with third parties such as invoice verification, online registration, and enterprise risk event inquiry Platform to help companies build and operate “non-sense finance” platforms that can cover the entire industry chain scenario. This service process from the early market research to the mid-term module customization, product launch, and deployment to later marketing promotion are all provided by Zejin.For one-stop service. For core enterprises, there is no need to add additional workload, no need to change traditional workflows, and even the original personnel posts and business efficiency can be optimized.

Zejin Financial Services developed a multi-level penetrating accounts payable chain solution nationwide in 2015, providing multi-level penetrating financing solutions for second- and third-tier suppliers with financing needs. With regard to the financing needs of suppliers, financial institutions can achieve T + 0 and T + 1 lending with the help of Zejin. At the same time, relying on overall efficiency improvement and a systematic risk control system, their financing costs are significantly reduced compared to traditional private institutions.

Since 2015, Zejin Financial has reached cooperation with nearly 20 groups and more than 200 core enterprises. Benchmarking cases include Gree Electric, Sinochem Group, China Construction, Sinopec, etc. As of October 2019, the supply chain financial transactions of Zejin Financial Services’ core enterprises exceeded 100 billion, of which the financing amount exceeded 32 billion, the number of transactions was more than 40,000, and the proportion of single transactions below 300,000 reached 50%, 80% below 1 million.

The core companies that Zejin Financial Services chooses to cooperate with are all leading companies with good operating conditions, good credit qualifications and healthy cash flow. Xin Hongjun emphasized that factoring is not the same as subprime mortgages. Based on high-quality core enterprises, which closely fit the industrial scene, the factoring assets generated are low risk and good quality.

However, high-quality core companies often have better operating conditions, no obvious financing gaps, and lack of motivation to actively establish factoring financing institutions. Therefore, how to dispel the doubts about the core companies’ human and material investment and work closely with supply chain financial institutions and Being able to copy and promote is a problem that Zejin focused on in the early stage.

In addition to reducing the threshold for core companies to start factoring business through the “non-inductive financial” service mentioned above, Zejin Financial also provides ABS super factory services -as the core enterprise ABS issuance from the whole process of program research, transaction structure design, legal agreement formulation, core enterprise and supplier marketing, issuance management, operation support, etc. With the support of online system + generation operation team, it can save a lot of time and labor costs for the enterprise . Xin Hongjun said that many of the core companies served by Zejin Financial Services have achieved annual profits of more than 100 million yuan.

“Our service model is the” super factory “of supply chain finance. In the field of supply chain finance, it is not efficient for a single company to build a comprehensive team that understands finance, industry, and technology. Xin Hong Jun emphasized that the cooperation between core enterprises and Zejin Financial Services, just like the cooperation between Apple and Foxconn, can obtain more professional and economical services.

From the perspective of the future market scale, Xin Hongjun judges that the B-side supply chain financial market has at least a trillion-level transaction scenario and tens of trillions of receivables and payables, that is, potential financing needs, of which at least half of the receivables Accounts originate from leading companies such as Gree and Sinopec. changeIn other words, the transaction scenarios represented by leading enterprises are about 20 trillion yuan, accounting for half of the total receivables and payable financing needs, but very few are currently being resolved.

Xin Hongjun judges that the current overall penetration rate of the supply chain finance field is low, and the model for information access and trust building is heavier. Due to the strong stickiness of B-side users, it is more important for Zejin at this stage to increase the penetration rate of a core company than to invest a lot of resources. Occupy more scenes-occupy more scenes and engage with more core companies as soon as possible Reach cooperation and complete the goal of occupying 10 trillion scenes.

At present, Zejin Financial Services’ profit points come from financial business revenue distribution, late value-added business cooperation and system subscription service charges. The customer unit price is in the millions. The entire team has about 100 people as of the end of 2019. The founder, Min Wei, has worked at China Merchants Bank, China CITIC Bank, Qianhai Weizhong Bank, and has more than 20 years of financial industry experience. Co-founder and CEO Xin Hongjun 10 years of bank-to-business business, 8 years of working experience in investment and financing of foreign companies in manufacturing, and cash management. The founding team has built the first domestic enterprise online banking, the first domestic electronic bill business platform, and the first domestic A multi-bank group treasury management platform, has won multiple PBC Technology Progress Awards and Shenzhen Financial Innovation Awards.

Zejin Financial Services completed a Series A financing in March 2019. The investor is a VC investment of tens of millions of yuan. In February 2016, the angel round financing of Fengrui Capital was completed.

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