In a recent move, the Ningbo branch of Ping An Bank Co.,Ltd. (000001) disbursed a 5 million yuan loan under its "Orange Loan for Foreign Trade Clients" program to a local import-export enterprise, effectively alleviating its dual pressures of capital turnover and inventory management for upcoming orders. This financing serves as another concrete example of the bank leveraging financial tools to help small and medium-sized foreign trade enterprises stabilize overseas orders and expand into global markets.
Currently, China's foreign trade economy is in a phase of accelerated development, characterized by continuous market expansion and robust activity among market participants. With strong top-down national support, Chinese industries are integrating more rapidly into global supply chains. Small and medium-sized foreign trade enterprises are a vital component of this economic sector, acting as key vehicles for the "going global" strategy. Providing effective financial services to support these businesses is a crucial task for financial institutions.
Leveraging its comprehensive financial strengths and cross-border expertise, Ping An Bank has launched a dedicated product for foreign trade enterprises—the "Orange Loan for Foreign Trade Clients" program. This initiative offers professional cross-border financial services tailored to the needs of small and medium-sized foreign trade businesses. The program has already been implemented in several provinces with active foreign trade sectors, including Zhejiang, Shandong, Fujian, and Guangdong, assisting local enterprises in seizing opportunities and navigating international markets.
Challenges for Small Foreign Trade Firms
Ningbo YG Trade Co., Ltd. in Zhejiang is a typical small and medium-sized foreign trade firm, primarily exporting stationery, toys, and handicrafts. This year, the company experienced a double windfall: it upgraded to a new factory with increased production capacity and simultaneously secured multiple large orders from countries like Italy, the United States, and Japan. However, this good fortune also brought doubled operational pressure. The construction of the new factory, the launch of new production lines, and the fulfillment of substantial new orders—each new development signified a significant financial outlay.
"Our business model is somewhat unique. The new orders we secured this year require large-scale inventory preparation, which creates immense pressure on our working capital due to tied-up funds. Yet, we cannot afford not to stock up for fear of missing these orders," candidly stated the head of YG Company.
The company faces a dual challenge. On one hand, there is a "mismatch in timing and pressure from payment terms." Domestic raw material purchases often require prepayment or short-term settlement, while overseas clients typically have payment terms of 30 to 90 days. This period of funding the gap puts significant strain on the company's cash flow. On the other hand, there is "inventory pressure and difficulty preparing for peak seasons." Exports of stationery, toys, and handicrafts have pronounced seasonal characteristics, necessitating substantial inventory buildup before peak periods like the Christmas season and back-to-school season. The company must balance inventory levels with order fulfillment, ensuring supply capability while avoiding excessive capital being locked up.
Financial and Inventory Pressures: Finding a Solution
The Ping An Approach: Data and Technology for Precision Problem-Solving
Statistical data shows that Zhejiang's total import and export volume consistently ranks among the top three in China. Ningbo, accounting for nearly one-third of Zhejiang's foreign trade volume, is a crucial national hub for foreign trade. This vibrant trade landscape hosts a large number of small and medium-sized foreign trade enterprises like Ningbo YG Trade, generating substantial demand for cross-border financial services. However, for such firms, the "short, small, frequent, and urgent" nature of foreign trade orders demands extremely high efficiency in capital turnover. The entire cycle—from receiving an order to procuring raw materials, organizing production, customs declaration, export, and receiving foreign exchange—often takes several weeks. The funding gap during this period becomes the primary bottleneck constraining business growth.
"Enterprises like Ningbo YG Trade, which operate on an 'overseas orders, domestic inventory' model, are not uncommon. The financial challenges they face, such as currency mismatches, timing mismatches, and inventory pressures, require more precise and flexible solutions from financial institutions," said Wang Dahai, Deputy General Manager of Ping An Bank's Ningbo Branch.
Addressing the pain points of such small and medium-sized foreign trade enterprises, Ping An Bank has conducted in-depth research into their needs. Utilizing big data modeling, the bank analyzes a company's actual operational data, such as import-export volume and foreign exchange receipt records, as the basis for credit approval, eliminating the need for physical collateral. Under the "Orange Loan for Foreign Trade Clients" program, Ningbo YG Trade, based on its consistent and stable export record, efficiently matched its needs and swiftly obtained approval for 5 million yuan in credit.
"This funding arrived just in time!" expressed the head of Ningbo YG Company. "Ping An Bank's loan offers a high credit limit, competitive interest rates, fast disbursement, and supports borrowing and repayment on demand. Before the peak season, we can draw funds at any time to prepare inventory and repay immediately after receiving payments, significantly reducing our financing costs. This gives our company more confidence to take on larger orders and explore more clients!"
Comprehensive Finance: Serving the Entire Lifecycle of Foreign Trade Firms
In recent years, the national policy framework has established a multi-level, systematic support system focused on "promoting stable scale and optimized structure in foreign trade." China's imports and exports have shown stable volumes with improving quality and diversified market development. Data indicates that by the end of 2025, China's annual import-export volume reached 45.5 trillion yuan, involving 780,000 import-export enterprises, over 90% of which are small and medium-sized. This highlights that foreign trade enterprises are crucial links connecting domestic and international economic cycles, with small and medium-sized firms acting as the essential "capillaries" for job creation and export stability.
Ping An Bank has long prioritized cross-border financial services for the foreign trade sector, having served tens of thousands of small and medium-sized enterprises. Building on this foundation and actively responding to national policies to stabilize foreign trade and investment, the bank launched the "Orange Loan for Foreign Trade Clients" program. It employs data-driven and technological tools to provide precise services to this client segment.
"Moving forward, Ping An Bank will continue to deepen the service system for small and medium-sized foreign trade clients, leveraging our solid foundation in cross-border and inclusive finance," said Yang Biao, Deputy General Manager of the Inclusive Finance Department at Ping An Bank. The bank aims to address the full lifecycle service needs of these enterprises. By utilizing its advantage in its cross-border account system (including onshore, NRA, OSA, FT, and overseas branch accounts) and exploring integrated services from the Ping An Group, such as insurance and global emergency assistance, the bank seeks to innovate and offer more diversified, personalized financial solutions. The goal is to walk alongside more foreign trade enterprises, jointly writing a new chapter in the high-quality development of China's foreign trade.
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