JD Helps SMEs Make Bill Discounting More Efficient

JD Helps SMEs Make Bill Discounting More Efficient

by Ling Cao

JD has helped SMEs streamline the process of bill discounting, which is a trade-related activity in which a company’s unpaid invoices that are due to be paid at a future date are sold to a financier (a bank or another financial institution). For many SMEs, bill discounting is an important way to ease cash flow issues, and the traditional process has often been complicated and time-intensive.

Tong Zhang works for a Jiangsu-based manufacturer producing non-standard devices that faced financial difficulty paying suppliers and employees in 2020, due to the pandemic and a long R&D cycle for producing products.

With JD Technology’s help, Zhang solved this urgent problem by dealing with the process via JD’s bill discounting platform, ultimately processing an amount of RMB 300,000 yuan.

The experience was smooth and worry-free, Zhang said. “Previously we didn’t know which bank could help us with the business, and it was difficult to compare which banks had lower interest rates. All of these problems can be worked out on JD’s platform.”

In order to use the platform, clients need to provide company certificates and sign an agreement—with approval usually granted in only half an hour. Then, they can upload invoices to one of the banks, and the billing will be completed in as fast as ten seconds, with the process being fully automatic. In contrast, a traditional offline process normally will need five to seven personnel for one bank, and one case may take over 10 days.

JD Technology has cooperated with many banks on the service since it was released in June 2018. Today, the platform has served over 130,000 clients, most of which are SMEs. The minimum billing value it has processed is RMB 2,000 yuan, enabling smaller businesses to benefit too.

Hui Wang, head of the bill discounting department at JD Technology shared, “By using big data and AI in the financial industries, we can analyze the market in real-time, help clients easily solve the billing queries, and even help institutions build an anti-fraud model to prevent counterfeiting bills.”

 

(ling.cao@jd.com)

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