Large Fire Fighting Equipment Order Signed Using Factoring Financing

On the morning of December 25, 2014, Fuzhou City Public Security Fire Brigade, Zoomlion Heavy Industry Science & Technology Development Co., Ltd. and Zoomlion Business Factoring (China) Co., Ltd. held a signing ceremony in Fuzhou for the purchase of fire fighting equipment worth nearly RMB 35 million. This is by far the largest single order of fire fighting equipment procured via factoring financing. 

At the signing ceremony, the Fuzhou City Public Security Fire Brigade and the head of the Municipal Finance Bureau were full of praise for Zoomlion's corporate culture and social responsibility and noted the positive role played by the government's innovative financing model. 

Zoomlion Business Factoring (China) Co., Ltd. is an independent financial platform under Zoomlion's financial services sector, which is one of its five major business sectors, and has registered capital of US$ 100 million. It is the first factoring company in the construction machinery, fire fighting equipment and environmental industry fields with a manufacturing background. 

Credit creates value, and service improves quality. To actively participate in the construction of urban infrastructure and to relieve the financial pressure on local governments for procuring city fire fighting equipment and sanitation facilities, Zoomlion has pioneered the innovative financial service of factoring within the industry. It is based on having a supplier and a purchaser of accounts receivable and is guaranteed by the government's fiscal credit, and it is a comprehensive solution for governments to procure integrated consulting, equipment and financial services. 

Factoring is simple, low cost and provides a flexible repayment plan. It is highly suited to the particularities of government procurement, can effectively relieve government financing pressures and improves the efficiency of, and is helping to transform, government procurement. The model is Zoomlion's new credit-based sales model and will further increase Zoomlion's overall competitiveness and potential market.