OREANDA-NEWS. August 22, 2012. Baosteel Bsteel Online and ICBC signed Overall Cooperation Agreement on supply chain financing business in Shanghai, which launched a new type online supply chain financing services in the domestic steel industry first, reported the press-centre of Baosteel.

Under the circumstance of imperfect credit evaluation system, traditional financing models for small and medium enterprises is difficult to separately obtain credit, resulting in increase in cost of capital for the entire supply chain. Bsteel Online hand in hand with the Industrial and Commercial Bank of China, through innovative online financial services model, providing a variety of low threshold and highly efficient financing services for small, medium and micro-sized companies of Baosteel supply chain financing services, in order to help upstream and downstream companies of the supply chain with financing and cash flow co-ordination arrangements, reasonable distribution of the mobility of each milestone to minimize the financial cost of the entire supply chain, and improve overall operational efficiency.

Since 2008, Bsteel Online has played the advantages of e-commerce platform, launched the financing service for Baosteel downstream traders supply chain, and provide financial support to SME traders for Baosteel. By the first half of this year, the business has been successfully provided to Baosteel's 213 customer, total financing of 3613 contracts, with total amount of more than 4.04 billion yuan.

On this basis, Bsteel Online turned the online financing focus from downstream traders to the upstream supplier community, with detailed knowledge of suppliers' demands, Union Bank launched new supply chain financing services for Baosteel's suppliers. Relying on Baosteel's good payable ability, with invoice information confirmed by Baosteel finance depatment as a basis, the bank will rapidly approve customer's financing application information submitted via east pay financing platform under Bsteel Online to provide financial support for suppliers.

At present, both the east pay financing platform and Baosteel's internal financial systems and online banking system have been successfully realized the dpcking, relying on the network and system technologies, multi-online interactive, real-time data sharing, the original 5-7 daysof the financing application and lendering time, has been shortened to within one day to complete a full audit and loan procedures, which greatly improved the efficiency of customer's capital utilization; enables banks to facilitate the access to customer credit information, to reduce the difficulty of the credit and loaning. Meanwhile, the platform provided customers with better, more accurate financing business online operation and tracking, customer can also realize real-time tracking of financing application , loaning and repayment through the system.

With the further deepening of the business, the online financing service will be promoted to the other units of Group, to make a wider range of Baosteel's suppliers enjoy Baosteel value-added services.