China Inc. Sells Unpaid Bills to Banks as Debt Web Spreads
- More receivables sold as ‘cashflow is getting tighter:’ Fitch
- Sany Heavy and Zoomlion enter ‘factoring’ agreements
China Inc. Sells Receivables Amid Payment Delays
This article is for subscribers only.
More and more Chinese factories are selling unpaid customer bills to financial firms, amid record payment delays.
Resorting to a method of raising cash faster known as factoring, Sany Heavy Equipment International Holdings Co., a Chinese machinery maker, said in earnings reports that it began selling receivables at a discount. Rival Zoomlion Heavy Industry Science & Technology Co. said in financial results that it had resumed the practice. Electric equipment maker Boer Power Holdings Ltd. this month announced a receivable leasing agreement with a state-owned asset management company.