Financing Model Analysis And Risk Control Of Supply Chain Finance

Supply chain finance model has become an effective way to solve the financing difficulties of SMEs, which changes the credit mode that banks and other financial institutions to a single enterprise in the past. It takes full advantage of the industrial structure of the supply chain and grasps the details of the transaction. It provides financial support to SMEs in the supply chain around the core enterprise. Supply chain finance has great market potential, which is becoming a new area of competition among banks. Therefore, it is necessary to take research on financing models and risk control of the supply chain finance, so as to bring new ideas the innovation and development of supply chain finance business.This paper studies the content and constituent elements of the supply chain finance and gives economic analysis from the view of the asymmetric information, credit rations and reputation chain, principle-agent. Through the game analysis of relationship between the bank and enterprise in the mode of supply chain finance, it indicates that the repayment will of enterprise is stronger in this mode than in traditional mode, and the bank prefers to lending to the enterprise which Is conducive to the development of the entire credit market,so as to reveal the advantage of supply chain finance.Through the analysis on SME's cash shortfall, it makes research on three basic financing model of supply chain finance (accounts receivable financing, confirming warehouse financing, accommodating warehouse financing), propose their major risk control, and compares and analysis three financing models. It proposes the credit risk evaluation index of "the main rating + debt rating", for the credit risk of supply chain finance. In addition it uses Principal Component Analysis and logistic regression to construct the credit risk evaluation system of supply chain finance, to reduce the limitation of expert evaluation and make the evaluation system more objective and scientific, which can provide credit decision-making reference for banks and other financial institutions. It proposes supply chain finance business solution based on hedging, for the market risk of instability of goods value of goods encumbered business in supply chain finance. Enterprise hedges for goods, while futures companies who commissioned by the bank supervises the deposits account of enterprise. So the bank raises the pledge rate, and the enterprise can get more loans. The paper designs the basic business processes of the program, operational risk control, and analyzes supply chain finance business solution based on hedging though practice example by hedge ratio, efficiency of hedging and VaR of hedging on short position.