SUMEC financial consulting services change with the times and keep innovative to provide all-round and multi-angle high-quality services for customers. Especially the foreign-currency cross-border financing solutions have helped customers reduce the financing costs, extend the financing period, expand the financing channels and practically meet the financing demands of medium and large enterprises over the last few years, and the company has been warmly received.

Cross-border financing - Euro installment solution

Considering the potential order and equipment processing requirements of other key customers in 2019, a new 3-board listed company occupied in high-end precision equipment customization and processing business planned to purchase high-end machining equipment from Europe with an amount of about 3 million euros. After investigating the RMB financial lease scheme, the customer proposed higher requirements for the financing period and cost. Upon understanding the customer’s needs, the business team and financial consulting service team of SUMEC provided Euro installment financing scheme, and finally help the customer obtain a preferential scheme with a five-year period, half-year repayment and financing cost 30% lower than that of finance lease through the whole-process professional services.

With Euro installment project implemented, the customer timely obtained high-end orders from other key customers, so that these key customers were retained while higher revenue and profits were created, and we were fully recognized by this customer. Now, as the business grows fast, this customer plans to be listed in Shanghai Science and Technology Innovation Board. The Euro installment scheme helps the customer purchase and deploy the high-end equipment as early as possible to expand the market share, and this provides a highly competitive alternative financing scheme other than finance lease for medium-sized growing enterprises and broadens the financing channels of these enterprises.

Project case: cross-border financing - long-term Euro loan solution

A domestic listed leading chemical engineering company invested about 5 billion yuan in a new project, including 30% of its own funds and 70% of its self-raised funds. In the past, the company always solved the financing of projects, including equipment importing, in a manner of bank loan. During the business communication with this customer, SUMEC team realized that this customer hoped to further reduce the cost of project loan to improve the return on investment of the project and create a better performance for all shareholders of the listed company. With the long-term Euro loan business (cross-border financing) understood deeply and comprehensively, this customer decided to entrust SUMEC financial consulting service team to apply for the long-term low-interest loans from European government and financial institution partners for European imported equipment.

With about half a year of efforts, under the help of rigorous project management system and professional project team of SUMEC, this project application was approved, and the relevant filing procedures of competent departments were completed, so that the project entered the withdrawal phase successfully. Through 11-year ultra long-term Euro low-interest loan, the stable and long-term credit support was provided for the customer’s new project, and the financing cost far lower than the benchmark interest rate for domestic RMB loan in the corresponding period was also obtained, so the customer’s original expectation was achieved smoothly.

What to do if you are worried that the review process is complicated or you don’t understand the requirements of cross-border financing business?

As a relatively professional consulting company in Chinese market, we can help the enterprises easily realize the cross-border financing and provide the one-stop whole-process entrustment services for enterprises, which can ensure both success rate of project approval and compliance and smooth delivery of the projects.