It often happens that suppliers cannotaccept orders because of a buyer's long payment term and buyers can't agreewith shorter payment term (because of their cash flow). However buyers andsuppliers both want to cooperate with each other.
Usually for a factory to get a bank loan byitself is quite difficult and this is not a popular option in doing thetransaction. This is where TradeAider can help too.
TradeAider will audit the factory andarrange further quality control of the production and supervise containerloading. This way the bank is more confident that the factory is reliable andtrustworthy and the transaction is valid. After the evaluation our partner bankwill send the loan with very low interest to the factory and then the factorycan use it to start the production or receive the payment right after theshipment.
Usually, customers forward their factoriesto TradeAider, then we communicate with the factory to see the company'squalifications and which bank products can be matched. Then we inform thesupplier about the interest rate and the application process, including theprocessing time, etc. The company can decide whether to use our service toapply for financing based on the information we submit to them.
Normally, the annualized interest rate ofRMB is about 4%, and some banks have higher interest rates, up to 8%. Foreigncurrencies are generally cheaper, around 2% -3%, which varies from bank tobank. The lower the risk of the loan product, the lower the interest rate.
To summarize, WeFinanceenables the transaction to take place between an importer and a factory onbetter conditions with shorter payment term. We charge the bank for the factoryevaluation, container loading supervision and the bank covers these fees.Further on, the bank will charge the supplier a low interest until the paymentis receive from the buyer. You may forward your factory to TradeAider forfurther discussion and we will be happy to specify which interest rate we andthe bank are able to offer to the factory.
Usually for a factory to get a bank loan byitself is quite difficult and this is not a popular option in doing thetransaction. This is where TradeAider can help too.
TradeAider will audit the factory andarrange further quality control of the production and supervise containerloading. This way the bank is more confident that the factory is reliable andtrustworthy and the transaction is valid. After the evaluation our partner bankwill send the loan with very low interest to the factory and then the factorycan use it to start the production or receive the payment right after theshipment.
Usually, customers forward their factoriesto TradeAider, then we communicate with the factory to see the company'squalifications and which bank products can be matched. Then we inform thesupplier about the interest rate and the application process, including theprocessing time, etc. The company can decide whether to use our service toapply for financing based on the information we submit to them.
Normally, the annualized interest rate ofRMB is about 4%, and some banks have higher interest rates, up to 8%. Foreigncurrencies are generally cheaper, around 2% -3%, which varies from bank tobank. The lower the risk of the loan product, the lower the interest rate.
To summarize, WeFinanceenables the transaction to take place between an importer and a factory onbetter conditions with shorter payment term. We charge the bank for the factoryevaluation, container loading supervision and the bank covers these fees.Further on, the bank will charge the supplier a low interest until the paymentis receive from the buyer. You may forward your factory to TradeAider forfurther discussion and we will be happy to specify which interest rate we andthe bank are able to offer to the factory.
