Financial Innovation Helps King Long Buses Arrive in Peru
20 August 2014
www.chinabuses.org: On Aug. 19, a batch of brand new King Long buses with a total value of over seven million USD lined up at Xiamen Port, ready for shipping to their destination in Peru.
According to the bus maker, the deal made with its customer in Peru was realized by a five-year long-term financing solution, making it the first successful case among Chinese bus manufacturers.
Through this special financial program, King Long first sells its vehicles to the importer in Peru and the importer then delivers the products to the public transport companies, which directly get the loans from Peru National Development Bank. To guarantee the smooth execution of the program, five parties, including King Long financing team, the buyer in Peru, Peru National Development Bank, Peru National Financial Supervision Department and China Export & Credit Insurance Corporation signed an agreement. In addition, Peru National Development Bank has initiated a special loan payment system at gas stations in the country. To be specific, when King Long buses get recharged with gas at various gas stations across Peru, they are required to pay a certain amount back to the bus maker in China apart from the fees for natural gas.
By relying on the sales agent as the credit receiver and the terminal customer's operating income as the source of repayment, the financing program helps the terminal customer effectively solve the difficulties for lacking financial resources.
Through this program, King Long further boosts its market presence in Peru, setting up a demonstration model for all Chinese bus makers.
Source : www.chinabuses.org
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