Solutions for Quick Inter-city Collection

In conventional bank business, corporate inter-city collection operations are merely limited to draft and T/T. Cash is scattered around, with much of it held in transit process. The China Merchants Bank's "Inter-city Express," a nationwide universal deposit service for institutional clients has literally turn the concept of transfer of account between associated banks in different cities into the new concept of "greater intra-city." Corporate clients may consign any service outlet of the China Merchants Bank in the country to collect their debts, and receive the cash instantly, which is also known as the "localization of inter-city collection service."

·	Through intra-city bill exchange, bearer or drawer of a bill may request that the service outlet of the China Merchants Bank in his or her city, after collecting a certain debt, transfer the cash instantly to the CMB account of the beneficiary in another city.
·	Convert inter-city T/T of corporate collection into intra-city exchange of bills, and significantly reduce the amount of fund in transit. Faster fund turnover results in greater value-added for the corporate clients.
·	A solution to slow collection process in trans-regional sales, which reduce the amount of cash held at different links in this process, and realize a centralized collection of payment for goods as well as a centralized cash management.
·	This service helps group corporations optimize their organizational structure, enhance operational efficiency, and improve their fund management and fund use effect.

Solutions for Management of Account Receivable and Financing Arrangement

With the development of market economy, the purchasers are taking the place of providers to drive the market. Providers, for their part, usually adopt more flexible ways of settlement in order including account sales to further improve their own competitiveness. This practice results in their steadily increasing balance of accounts receivable, and to some extent affects their balance sheets as well as some financial indicators. In an effort to optimize corporate financial structures and accelerate the capital turnover, the China Merchants Bank introduced "Domestic Baoli" and "Overseas Baoli" services to eliminate a great deal of accounts receivable from the clients' balance sheets, and replace them with cash or bank deposit.

The provider endorse to the China Merchants Bank its accounts receivable from the sales contract it signs with the purchaser. The China Merchants Bank, for its part, clears accounts receivable on behalf of the provider through financing or non-financing channels, sitting in charge of the management of accounts receivable, and the collection of debts.

Advantages for Providers:

1.	Turn immature accounts receivable into cash and improve financial structure.
2.	Offer more attractive ways of long-time settlement to purchasers, thus expanding their market share and promote product sales.
3.	Purchaser' credit risk is converted into accounts receivable of the bank, collection ensured.
4.	Creditability investigation, account management and debt collection will be the sole responsibility of the transferee bank of the accounts receivable. Management cost is thus reduced.

Advantages for Purchasers:
1.  Make the best of favorite long-time settlement offers, and accelerate fund turnover
     for greater profit.
2.  Save the cost for establishment of banker's acceptance bill, L/C, etc.