Commercial Banks Metallurgical Logistics Financing Product Design And Promotion

Logistic Finance Product (LFP) is a new finance product rising recently in China finance market. Logistic Finance (LF) is a very new concept which has no very specific definition. However, there are two ways to explain it. In general, LF indicates that in the whole supply chain, through bringing about and applying new financing products, monetary resources could be effectively organized and adjusted, so that the working efficiency of the supply chain could be improved. Based on this, the logistics industry and the finance industry could get mutual development. In narrow sense, LF means that banks together with logistics companies provide financing services to middle and small-size enterprises with Pledge and the pledge under the management of logistics companies. Logistic Finance in this paper prefers to the latter.The emerging of LFP comes from the problem that middle and small-size enterprises cannot easily get loan from banks directly. At present, middle and small-size business is a very important part of national economy in China. Although the government has encouraged banks to supply loan to these kinds of enterprises, banks are still cautious to lend money to them because of the following two risks:1、Without good credit records and transparent fiscal statements;2、Without sufficient estate mortgage or no third party willing to be guarantor.As a result, LFP is an effective financing method to resolve the problem.On the other hand, it helps financial institutions to avoid credit risks well. At the same time, it also could help financial institutions has more chances to provide financing services to corporations by concerning the relationship of supplying and selling, and the demand of money in the whole supply chain. Moreover, financial institutions develop the market of middle and small-size business.The key point of this paper is Metallurgy Logistic Financing Product (MLFP) which refers to LFP using in Metallurgy industry. Metallurgy industry stands for the industry of black metals and nonferrous metals. In short, MLFP is that LFP is applied in steel manufacture and nonferrous metals corporations.As in China Minsheng Bank, the business has divided into four parts by industry categories. In this study, MLFP is combined with concrete conditions of the department of Metallurgy industry in Minsheng Bank. The writer hopes this study could help improve the core competitiveness of the department of Metallurgy industry in Minsheng Bank in China financing market.The paper begins with the concept of " Logistic Financing" "Logistic Financing Product" and "Metallurgy Logistic Financing Product". Firstly, the importance of MLFP is introduced, and the importance of MLFP for banks, business and logistics business is stated.Secondly, this paper states in detail the followed points:emerging、developing、the operating pattern、the risks and the trend of development of MLFP in China financing market.Thirdly, the study analyzes the MLF financing market in which the demanding、supplying of MLFP.The core of this work is part four. In this part, the writer analyzes MLFP in Minsheng Bank including:1、Marketing positioning of MLFP;2、Theory、intension、variety and designing frame of MLFP;3、Operation flow of MLFP.Further, a case is involved in this part. The writer provides product solution for the corporation in this case and presents the product thoroughly. Fifthly, this paper illustrates the marketing strategies of MLFP in three aspects:the strategy based on the merchants、the core strategy based on the manufacturers and the strategy based on logistics companies.Lastly, the writer concludes the disadvantage of this paper. I hope my study is useful for commercial bank to design and promote of MLFP.