Supply chain finance gets tech edge, to boost private enterprises

Chinese commercial banks are strengthening supply chain finance with the help of technology to solve difficulties at private enterprises, especially small and micro-sized businesses.

Supply chain finance allows a supplier to sell its invoices to a bank at a discount as soon as they are approved by the buyer. This allows the buyer to pay later and the supplier to secure its money earlier.

China Minsheng Banking Corp, a national joint-stock commercial lender - a business entity in which shares of the company's stock can be bought and sold by shareholders - is providing comprehensive financial and nonfinancial services to private enterprises in the upstream and downstream supply chains.