December 25, 2023

On December 25, 2023, Caterpillar (Beijing) Commercial Factoring Co., Ltd. received approval for its registration and establishment in Beijing E-Town. This marks the arrival of the first foreign-funded commercial factoring company in Beijing, adding another achievement in the financial development within the "Two Zones" framework.

Caterpillar (Beijing) Commercial Factoring Co., Ltd. is established with investment from the wholly-owned subsidiary of Caterpillar Inc., a Fortune Global 500 company from the United States. Caterpillar Inc. is one of the world's largest manufacturers of construction machinery and mining equipment, as well as gas engines and industrial gas turbines. It is also one of the largest diesel engine producers globally, ranking 230th on the Fortune Global 500 list in 2023.

Commercial factoring allows companies to transfer the accounts receivable generated from their credit sales in goods sales and service contracts to a factoring company, which then provides them with comprehensive financial services such as financing, sales account management, and accounts receivable collection. The newly established Caterpillar (Beijing) Commercial Factoring Co., Ltd. can meet the various business needs of Caterpillar Inc. in the Chinese market, such as commercial factoring financing and accounts receivable management, greatly alleviating its supply chain funding pressure. Additionally, the company's establishment in Beijing E-Town will further improve the regional industrial financial supply system. By offering high-quality supply chain financial services, the company is set to expand the financing channels for real economy enterprises, strengthen industrial clustering, and provide further support for Beijing's commercial factoring industry.

(Source: E-Town Times)