Supply Chain Finance And Venture Management Strategy

After the financial crisis, more and more enterprises, banks and academics have drawn attention to the development of supply chain finance, as it has become a very important tool for the supply chain management, a new business growth point for the banks and a solution to the problem of small-and-medium enterprise financing. Nowadays, commercial banks can provide more supply chain finance products than before and this concept is widely accepted by more different business fields and companies. Under this circumstances, commercial banks have to put more attention on the problem of how to effectively prevent the risk when provide the supply chain finance services. Based on this problem, this paper analysed different risks of supply chain finance and provided many effective strategies for the banks to use as a tool of venture management.The structure of this paper was divided into six chapters. The first chapter described the background, the significance and the working method of the whole paper. The second chapter introduces the supply chain development and the concept of supply chain finance. This chapter also introduces the value of supply chain finance. The third chapter introduces three modes of supply chain finance and its development situation in China and aboard. The last part of this chapter describes the risks during the development of supply chain finance. The forth chapter introduces the methods of evaluating the risks of supply chain finance service before it carry into execution. These methods which can be used to evaluate the supply chain, the core company and the related companies are the first barrier for risk prevention. The fifth chapter is divided into two parts. The first part introduces the key factors of risk prevention and the ways to operate these risk factors. The second part introduces the different types of risk management measures and point out two effective ways of risk management. The sixth chapter describes a supply chain financial case on steel industry, which shows good venture management can ensure supply chain finance run smoothly and solve the problem of small-and-medium company financing. The last part gives a conclusion of this paper and makes a prospect of further study of supply chain finance.This paper is a innovative and practical research for the application of supply chain financial risk management strategy. It analysed the risks of supply chain finance service and pointed out the working strategies of supply chain financial venture management. Meanwhile, this paper also introduces some practical measures on risk management like facility rating, cash flow management, structured credit and so on. Hope that the research of this paper can provide security for the development of supply chain finance service.