The above-mentioned company is an online e-commerce platform that provides integrated services to suppliers and customers in the foodservice industry in China. The company works closely with suppliers and customers in the catering industry, providing one-stop procurement services, as well as other services.
Its new supply chain finance company will serve suppliers and purchasers on JM Wowo’s online marketplace by providing them orders factoring for accounts receivables and credit granting service on the platform.
More than that, to better serve JM Wowo’s clients, the finance company will provide financing and leasing services to international source suppliers who make large commodity transactions on JM Wowos online marketplace or supply large equipment to JM Wowo customers. For these corporate clients, the finance company will also connect them with banks for commercial paper, as well as provide some customized financial services for supply chain solutions.
Additionally, the initiation and development of the supply chain finance business will not only equip JM Wowo’s online marketplace with transaction service and user-friendly experience, but also contribute significantly to JM Wowo’s revenues and profit from this new business sector.
According to recent research, net account receivables increased 3.55 times over ten years with an annual compound growth rate of 15%. As an essential form of supply chain finance, the increasing scale of account receivables provides a solid ground for the development of supply chain finance.
Also, the study underlines the fact that the rapid development of financial leasing is favorable to companies who need specialized equipment on a large scale and is also meaningful to the growth of supply chain finance.
Furthermore, driven by the development of accounts receivables, commercial paper and financing and leasing, China’s supply chain finance is showing rapid growth trend.
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