The textile industry is a typical capital-intensive industry. The procurement of upstream raw filaments requires cash settlement, while downstream payments generally have a settlement term of 3 to 6 months or even longer. Under the 'delivery before payment' model, there is a serious mismatch in capital recovery cycles. Recently, targeting the financing pain points of enterprises in the textile supply chain, Huzhou Bank successfully issued accounts receivable pledge loans for a textile industrial chain customer within its jurisdiction, with funds disbursed via digital RMB, effectively easing the enterprise’s working capital pressure.

The enterprise is located in the textile industrial cluster of Jiapu Town, Changxing County, and mainly produces textile finished products. During site visits, Huzhou Bank learned that to sustain production, the enterprise had previously obtained bank loans secured by its own real estate, yet the financing limit of collateral was nearly exhausted. Meanwhile, downstream accounts receivable faced obstacles such as scattered payers, wide regional coverage and uncertain collection time, putting the enterprise in a difficult position.

To address this challenge, Huzhou Bank activated its rapid response mechanism for supply chain finance and formulated an accounts receivable pledge financing plan. The enterprise completed registration and identity verification on the China Collection Accounts Receivable Financing Service Platform. The bank verified purchase and sales contracts and cross-checked the authenticity and legality of accounts receivable through the platform. Afterwards, pledge registration was completed on the Uniform Movable Property Financing Registration and Publicity System of the Credit Reference Center of the People’s Bank of China (zhongdengwang). Information including secured creditors, guarantors, description of secured assets and registration term (12 months) was entered. After public notice, the registration carries legal effect and credibility against third parties. Adopting the dual mechanism of 'platform information verification + pledge publicity on registration system', no additional real estate mortgage from the enterprise is required. Financing is supported directly by future cash flow, lowering the financing threshold.

In this financing service, Huzhou Bank innovatively adopted digital RMB for loan disbursement. Funds were transferred in real time to the enterprise’s corporate digital RMB wallet with no intermediate clearing links. The enterprise could convert funds from the digital currency wallet back to deposit accounts for use on the same day. It effectively relieved seasonal capital pressure. The enterprise also enjoyed zero handling fees for digital currency payment, further cutting overall financing costs.