Big news! After selling Paton, Cross-border Communication once again...

As a top seller on Amazon, Paton has accumulated more than 600 Best Sellers on Amazon and is also the object of worship for many small and medium-sized sellers. For a while, many people had many questions about why Kuaishou sold Paton.

Last night (March 1), Cross-Border Link suddenly announced that it would provide a $100 million guarantee to its subsidiaries :

The guarantor in this announcement , Global Easy Shopping , has been in deep debt crisis for a long time. This is not the first time that Cross-border Link has guaranteed it. Cross-border Link said that in recent years, the company's capital demand problem has been more prominent. In particular, the capital demand generated by Global Easy Shopping's cross-border e-commerce business and debt repayment is relatively tight.

Since 2020, due to the performance losses in 2019, Global Easy Shopping has been affected by the reduction of credit lines by financial institutions and the inability to renew some debts when they mature. In 2020, Global Easy Shopping repaid a total of 1.15 billion yuan in debts to banks and other financial institutions, causing the net cash flow from financing activities to drop from 755 million yuan in 2019 to -440 million yuan in 2020. The repayment of debts further occupied the company's operating funds.

It is understood that Global Easybuy's short-term loans and accounts payable total about 1 billion yuan , all of which need to be repaid in the short term or within 2021. Among them, short-term loans are mainly loans from banks and other financial institutions (of which 230 million yuan is the aforementioned loan to Shenzhen Hi-Tech Investment), and accounts payable are mainly payable for commodity purchases, marketing and promotion fees, warehousing and logistics service fees, etc.

The move by Cross-Border Link to sell Paton this year and provide a $100 million guarantee gives people a feeling of "rebirth after a broken arm . "