“This ‘Tea Industry Chain' financing is truly a timely relief, ensuring that the tea farmers receive their payments.” Tan Lunxue, head of the Wanzhai Lvyun Tea Factory in Xuanen County, Enshi Prefecture, Hubei Province, and a veteran in the tea purchasing and sales business for over 20 years, expressed his gratitude. Guided by the People's Bank of China (PBOC) Enshi Branch, the factory successfully applied for nearly 2 million yuan in credit funds from Xuanen Rural Commercial Bank through the China Receivables Factoring Service Platform (hereinafter referred to as “the China Receivables Platform”), using accounts receivable from the local leading enterprise—Xuanen Wutai Changchen Tea Co., Ltd. as collateral. The funds were used to promptly purchase Selenium-rich tea from local farmers.
The tea resources in Xuanen County are abundant, surrounded by green mountains. Over the years, they have successfully developed a distinctive tea industry chain centered around the brand “Wutai Tribute Tea.” Local leading tea enterprises promote specialized operations in the tea industry, guiding farmers to intensively cultivate tea planting, contributing to increased efficiency in the tea industry and higher incomes for farmers. However, during the annual tea purchasing season, due to longer payment cycles for downstream sales, small-scale tea merchants and enterprises face tight liquidity, hindering the healthy development of the tea industry.
To support the high-quality development of the local characteristic tea industry, the PBOC Enshi Branch took proactive measures. After conducting on-site research and visits, they introduced the China Receivables Factoring Service to Xuanen Wutai Changchen Tea Co., Ltd. By facilitating direct connections between core enterprises, the China Receivables Platform, and commercial banks, they utilized the platform's online confirmation function for account information. Leveraging the good credit of core enterprises to enhance the creditworthiness of new agricultural business entities, they formed a quadruple collaboration model—”China Receivables Platform + New Agricultural Business Entities + Core Enterprises + Banks”—creating a “Tea Industry Chain” financing model. This injects continuous financial power into the tea industry, contributing to the optimization and improvement of the business environment.
By the end of June this year, the PBOC Enshi Branch had guided financial institutions across the prefecture to support 1,411 tea enterprises (instances), providing a total financing amount of 1.416 billion yuan. Relying on the system connection mode of the China Receivables Platform, a cumulative credit authorization of 13.47 million yuan has been granted, ensuring the prompt payment to upstream tea farmers and greatly boosting the confidence of business entities along the industrial chain.
“Our bank will continue to guide financial institutions to focus on serving the real economy. Relying on the China Receivables Platform, we will deepen the promotion and application of the ‘Tea Industry Chain' financing model, improving the financing efficiency and access rate of new agricultural business entities. We will consistently contribute to the optimization and improvement of the business environment, making a financial contribution to rural revitalization,” said a representative of the PBOC Enshi Branch.
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