Dynamic Credit-Based Model Research On Farmers' Supply Chain Financing

Credit transaction is an exchange of value over time. In the transaction, the credit of the borrowers and lenders plays a crucial role in reducing future uncertainty, reducing credit risk, safeguarding safety of funds, guaranteeing credit transactions and other aspects. As the typical credit disadvantaged groups, Small & Midium-sized Enterprises and farmers often face severe credit constraints because of information asymmetry and the lack of collateral. Under the circumstance of information constraints and insufficient collateral, how to improve credit situation of disadvantaged groups through governance mechanism innovation of credit transaction in order to ease its credit constraints? Supply chain financing for SMEs is an effective financing solution. But current researches have not yet given satisfactory answer to the inherent mechanism and the external effects of this financing model, and to the applicability of Supply chain financing for farmers. Starting from the dynamic credit, the dissertation has carried out in-depth analysis of various available financing modells through theoretical and empirical research and illustrates how it solves several critical problems concerning the farmers'financing difficulties.In theory, what is the formation mechanism of the credit in supply chain financing? In absence of sufficient credit capacity, how to credit farmers in supply chain financing? Under the imperfect judicial system and unsound credit system, how to establish liability performance mechanism in order to control credit risk? What is the basis and conditions for formation of credit?In practice, which are feasible supply chain financing modells for farmers? How is the application effect? What is the key factors that affect the credit level of the borrowing farmers?Through research, the dissertation answers these questions and comes to conclutions as follows:First, supply chain network governance is the external conditions in the formation of supply chain financing dynamic credit. Under certain supply chain network governance, the dynamic credit that formed in the transaction interaction between transactors could be transferred into bank credit through establishment of credit management mechanism(such as access of credit, structure credit, tied credit and group credit),and establishment of compliance mechanisms(such as screening before loans, cash flow control, guaranteed replacement, and re-settlement of loans liabilities) to improve the credit rating, and ultimately improve line of credit. Meanwhile, the supply chain network governance can change the characteristics of the transactors, so that the bank line of credit can be improved directly or indirectly.Second, farmers'supply chain financing model based on credit guarantee could significantly improve the credit level of borrowing farmers. The combination of different guarantee factors can significantly affect the ability of guarantee as well as the credit level of loan applicants.Third, farmers'supply chain financing model based on agricultural produce pledge could significantly improve the credit level of borrowing farmers. The value control of the agricultural produce is a key factor that affects the credit level of loan applicants.Fourth, farmers'supply chain financing model based on purchase-order can significantly improve the credit level of borrowing farmers. The credit capacity of trading partners, the valve control level of trading partners, and the finance education level of supply chain are the key factors that affect credit level of loan applicants.To sum up, combining theoretical and empirical analysis, the dissertation has conducted a study on the conditions and mechanism of credit's formation in farmers' supply chain financing model, and verify the feasibility, application effect and key factors of supply chain financing modells based on guaranteed credit, agricultural produce quality collateral, purchase-order collateral and so on. The dissertation may contribute to the existing paper in the following aspects:First, the dissertation has solved the incentive-compatible problem of the farmers from the perspective of the supply chain, proving that supply chain network management system could replace the farmers'constraint of self-restraint to achieve complete incentive-compatible constraint, thereby reducing the credit risk and alleviating credit rationing;Second, the dissertation has constructed a theory of dynamic credit, proving that the dynamic credit formed in the transaction interaction could be transferred into bank credit through establishment of credit management mechanism and providing a new way to solve the credit difficulties;Third, the dissertation has proved that even without specific relationship investment, the existing supply chain management network can be fully used by the borrower and the lender for the management of credit transactions, and then provided a new way to manage the credit transactions; Fourth, the dissertation has proved the applicability of the supply chain financing for farmers, and given preliminary answers to several theoretical questions of supply chain financing about the formation mechanism and the basis and conditions for the formation of credit through constructing dynamic credit theory for supply chain financing;Fifth, the dissertation has proved that as farmer's supply chain business partners,the core enterprises and the cooperatives have more advantages in information than rural credit cooperatives. By providing third-party credit guarantee, the core enterprises and the cooperatives could play a better role in signal supplement;Sixth, the dissertation has proved that the pledge of movables embedded in the supply chain network could compensate farmers for the lack of collateral, and then provided a new way to expand the effective scope of the collateral;Finally, the dissertation has proved that the cognitive level of supply chain financing could significantly affect the credit level of borrowing farmers, preliminarily discussed the possible causes of the bank itself that lead to credit constratints and difficulties in credit by the bank, and provided a new way and perspective to alleviate credit rationing;...