Background:
There is an electronic industrial company in Shanghai (referred to as Company A), founded in
1991 with registered capital of RMB6.78 million yuan. It mainly produces LED encapsulating
material, semiconductor packaging material and semiconductor mounted frame etc. Since
2005, it has established cooperative relationship with Chailease when it just founded and
sustained cooperation until now.
Cooperation program
2005: Leaseback
As Company A was at growth stage and needed operating funds of 2.4 million, it carried out
the leaseback with our company with in-plant equipment as contract object. During 3 years’
of lease term, the company had obtained 2.4 million yuan and thus realized stable
development.
2009: Equipment direct financial leasing
As Company A grew rapidly, it needed to expand the production line and purchase new
equipment and thus demand of 5 million yuan. Thus it cooperated with Chailease once again.
During 3 years’ of lease term, the company had obtained 5 million yuan and thus realized
substantial development after the establishment of production line.
2011:Trade
Due to expanded production in 2010, Company A needed to purchase large quantities of raw
materials which would occupy funds. At the beginning of 2011, Company A expected to
continue to cooperate with our company. In view of Company A is one regular faithful
customer of us, we give 3 million trade credits once again with total credit balance up to 6
million.
Use of funds: Purchase raw material of oxygen-free copper of which daily requirement is
about 10 ton.
Fund demand: 4 million yuan for buying of 60 ton
Repay by installment repayment for 12 times with monthly amount of repayment less than
300000. Company A chose free reimbursement which means to repay less in slack season and
more in peak season.
2012~2016:Trade
Years after 2011, since Company A has a stable order quantity and has no need to worry
about the financial matter even in case of peak season, he applied tally trade mode towards
our company for saving enough raw materials for peak season. In this way, even if he
encountered difficult period for clients and recovered credit slowly, he would have no
financial pressure as well as actively provide its clients with grace period, which led to
customer acceptance and thus established a long-term cooperation customers. So far,
Company A’s trade cooperation with Chailease has over ten times with the highest current
balance up to 6 million and now even has working balance of 3 million yuan.
Result:
Revenue of Company A in 2005 is about one hundred million and has reached two hundred
million in 2009; however, payment term is 2~3 months regarding to account receivable of
more than 40 million yuan and payment term is 1 month regarding to account receivable of
more than 20 million yuan plus with stock of about one hundred million, so that the financial
pressure is really large. Through cooperation with Chailease, they greatly alleviate the
financial pressure. At present, the economic environment is descending, though with dropping
revenue, Company A could still maintain stable profitability with steady development.