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Barley Finance: Mainly in supply chain finance, is it worthy of the name?


Text | Little elephant to be early

Xiaoxiang used to mention the rice tank finance before, I will find a period to talk to you about the online loan platform related to supply chain finance. But unfortunately, so far no one has found a better platform in this field. Pulling the big flag to pull a lot of tiger skin, but deep into the essence but they are covering up.

So let us first take a closer look at this business model and the possible risks in this process, and then look at it by looking at a platform that focuses on supply chain finance.

Here the elephant still wants to bring you some basic concepts.

The first concept that needs to be clarified is what is the supply chain . It refers to the control of information flow, logistics, and capital flow, from the procurement of raw materials to the production of intermediate products and ultimately to the consumers through the sales network. Suppliers, manufacturers, distributors, retailers, and ultimately the end users are connected into a functional network chain structure. It is not only a logistics chain, information chain, capital chain connecting suppliers to users, but also a value-added chain. Materials in the supply chain increase their value due to processing, packaging, transportation and other processes, bringing benefits to related companies.

Then supply chain finance is the financial service generated by relying on the supply chain. Specifically, it refers to financial institutions surrounding core enterprises, managing the flow of capital and logistics of upstream and downstream SMEs, and transforming the uncontrollable risks of individual enterprises into supply chain enterprises. The overall controllable risk, through the three-dimensional access to all kinds of information, to control the risk to the lowest financial services.

Factoring is one of the most important types of supply chain finance. The full name of factoring is called the insurance agent, also known as the insurance payment. The seller sells the goods based on the goods with the buyer now or in the future. The accounts receivable arising from the service contract are transferred to the factoring provider (the financial institution providing the factoring service), and the factoring provider provides financial financing, buyer credit evaluation, sales account management, credit risk guarantee, account collection, etc. A comprehensive approach to financial services for a range of services.

Factoring itself is divided into bank factoring and commercial factoring, and the financing projects related to supply chain finance provided by the online lending platform refer to commercial factoring. The value of these factoring companies also exists as bank factoring. In addition, it is more representative of its targeted services based on an in-depth understanding of a specific industry. After all, the factoring business has always been an important part of the bank's credit business. If you want to get this cup, if you don't have a unique competitive advantage, then it is easy to fall into the state of empty financing from the actual industry chain. So far, everyone understands.

Therefore, as I mentioned in the opening article, I have not found a relatively high-quality online loan platform involving supply chain finance. It is also based on the above considerations, because this part of the business is difficult to release and directly put on the online loan platform, and P2P financing. The cost is too high, so if it is supply chain finance, even the SMEs in this industry chain, this financing cost is unacceptable, unless it cuts into a very detailed link, and the platform itself has this aspect. Unique resources, otherwise it is difficult to design investment products that are in line with the online loan platform. At least at present, Xiaoxiang has not found any platform with such high-quality financing projects.

So today we come to take this question to observe a network loan platform that claims to be the main supply chain finance. Let's see if this more complicated business form can really be grafted to P2P directly connected.

The name of this platform is called Damai Finance. From its official website, we can see that the core of the operation of this platform is Shenzhen Damai Finance Internet Financial Services Co. , Ltd. Through the enterprise information inquiry, we can see that the company was established in June 2014. The registered capital is 30 million yuan and the paid-in amount is 11 million yuan. From the composition of its shareholders, we can see that it currently has four legal person shareholders and one natural person shareholder. They are respectively Shenzhen Innovative and Stable Investment Partnership and Shenzhen Investment. This Management Co., Ltd., Shenzhen Great Wall Changfu Investment Management Co., Ltd., Sichuan Shengda Forestry Industry Co., Ltd. and CEO of Damai Finance, Gu Chuanguang. Among the several corporate shareholders mentioned above, three are the investors of the three rounds of financing for the barley wealth management A, B and C. Because Great Wall Changfu is a state-owned wholly-owned holding company, the first label of barley wealth management is the state-owned department, and Sichuan Shengda Forestry Industry Co., Ltd., which was incorporated in October this year, is a listed company, so barley wealth management has also been Continue to affixed a number of shiny labels such as the state-owned department, the listing department, and the completed C-round financing. However, we continue to look at the shares of the two companies currently in the barley wealth management, the first is the Great Wall Changfu, which has a share of 8.6580% with a paid-up of 1 million, while Sichuan Shengda is only subscribed for 550,000. The share ratio is 4.7619%. This poor share and the amount of the subscription is really difficult to convince the state-owned and listed companies of the barley wealth management, and the gold content of this C-round financing is not high. Therefore, from the current share ratio, Shenzhen Guo Investment Management Co., Ltd. and Gu Chuanguang have a similar proportion of shares, which are 33.29%, which can be regarded as the actual controller of barley wealth management.

Then let's take a look at the management team of Barley Financial. After all, it is a network loan platform that focuses on supply chain finance. Then, does its management team have the resource advantages and industry experience in this area, and can operate this complex business model? that?

First of all, look at the CEO of Barley Financial Management, Gu Chuanguang.

Through the introduction of the official website, we can learn that he graduated from Nanjing University, is a master of management, is also a senior financial planner, has 8 years of financial experience, and the main business area is financial product sales. From his work history, Xiaoxiang did not see any work experience related to supply chain finance and commercial factoring, even if it was in the financial industry, it was not a credit-based job.

Let's take a look at the other two core management members.

Chief Operating Officer Chen Guojun , Bachelor of Civil Engineering from Huazhong University of Science and Technology, 5 years of experience in the financial industry, 8 years of experience in Internet operations, is good at the operation and promotion of P2P platform.

Chief Technology Manager Yin Maorong , Bachelor of Software Engineering, worked for Sina company, TOM ONLINE and other well-known companies, and is good at system development related to Internet finance.

At present, the official website shows these three core management personnel. The elephant is very strange. The work experience of the barley wealth management staff does not match the business model of the main supply chain finance, so there is no debt at all. Get the advantage.

Let's take a look at the specifics of financing projects related to commercial factoring in Barley.

From its official website, we can see that the current financing projects for barley wealth management are roughly divided into four categories. They are wheat field plans, experience plans, personal loans, and exchange-listed assets.

Among them, the wheat field plan is a commercial factoring financing project. I have probably browsed the investment targets under the project, and the cooperation institutions are Shenzhen Guotou Commercial Factoring Co., Ltd. And these financing projects are all the same as the transfer of creditor's rights. That is, Shenzhen Guotou Commercial Factoring Co., Ltd. transfers the pledge of accounts receivable under its name to the investor, and then repurchases after the project expires. We can open a specific target to see.

Through the introduction of the project target, we can see that this is a loan with a loan amount of 20 million, a loan interest rate of 10%, a loan term of 6 months, and a repayment method of paying interest on a monthly basis. Mobility funds borrowing, it is divided into 20 periods, each period of borrowings is 1 million yuan, the current period is the 12th period, which should be a relatively typical amount of split.

Let us look at the safeguards it provides. From the project description, we can see that the four safeguards for the investment target are:

1. Shenzhen Guotou Commercial Factoring Co., Ltd. repurchased the transfer claim to the investment user on the date of expiration.

2. A large group undertakes unlimited joint guarantee responsibility.

3. The actual controller provides unlimited joint liability guarantee.

4. SDIC commercial factoring risk reserve principal and interest advance payment.

Since there is no disclosure of a large group and its actual controllers in the description of the project, and there is no guarantee contract, it can be basically determined that the two safeguards of Articles 2 and 3 are ineffective. The first safeguard measure and the fourth safeguard measure mean that the security of the entire creditor needs to be provided by Shenzhen Guotou Commercial Factoring Co., Ltd. All financing projects involving commercial factoring under the Barley Finance are also recommended by this SDIC commercial factoring. It shows how strong it depends on it. Once it has any problems, it will create a lot of potential risks.

Then let's take a look at the situation of this national investment commercial factoring. Through the company information inquiry, we can see that the company was established in November 2013 with a registered capital of 215.05 million yuan and a paid-in amount of 200 million yuan (2015 annual report data). At present, the company has 8 legal person shareholders and 1 natural person shareholder. The legal person shareholder with the largest proportion of shares is Shenzhen Guo Investment Management Co., Ltd., which can be recognized as the actual controller of SDIC commercial factoring with a subscription amount of RMB 142.83 million.

Written here, I don’t know if you found out, isn’t Shenzhen Investment is not one of the actual controllers of barley financing?

Then, in such a cycle, isn’t the commercial factoring business of Barley Finance a self-guarantee? Judging from the current requirements for online loan supervision, this is expressly prohibited. Moreover, all the claims of Damai Finance's factoring business financing project are from this Shenzhen SDIC Commercial Factoring Co., Ltd. It is really difficult for people to question the effectiveness of their guarantees.

Therefore, Xiaoxiang still retains the initial attitude of the article. So far, no high-quality online loan platform for supply chain finance has been found. Of course, the complexity of this part of the business is not suitable for P2P platform. With the gradual landing of the regulations, it will become more and more difficult to fully comply with the regulations.

| Statement: The article does not constitute investment advice, this article is the author's original, if reproduced, please indicate the author and source, thank you for your cooperation.