Research On Supply Chain Finance Model Of Small And Medium-sized Enterprises

The status and function of Small and Medium sized Enterprises (SMEs) in the development of economy and society is more and more widespread recognition. But SMEs still face very seriously financing dilemma, especially the bank loans. It is very important to Study the financing problems of SMEs in promoting China's economic and social development.Financing puzzledom not only troubled SMEs, equally troubled financial researchers. At home and abroad, the theory circle has put forward various measures, and the government and the society have adopted a variety of measures. All the measures could solve the problem in some kind of degree, they also have some flaws..This paper argues that SMEs financing difficulties are caused by the lack of enterprise's own credit, their credit structure is different from the bank risk control structures.Supply chain finance will integrate the credit of core business into the SMEs to enhance the credit of SMEs. The most important is the supply chain financing model can change the bank risk control structures. This change may ease SME financing difficulties. Supply chain finance is precisely a more effective mechanism for resolving the financing puzzledom of SMEs.Supply chain finance is a new financing model tailored specifically for SMEs. It effectively integrates capital flow with supply chain management and provides new finance service for the weak enterprises in supply chain. And therefore it is very necessary to study systematically on the operation of supply chain finance, which reveals its advantages and improves the effectiveness of the plight of SMEs' financing.The supply chain finance model can bring participants win-win situation, on the one hand it reduces the risks of banks but also has the scale loans, improves the profitability of the bank, on the other hand, it can smooth the funds flow of enterprises to enhance the overall competitiveness of the supply chain, promotes the formation of the supply chain scale economics, which further reinforces the supply chain, reduces the financing risks. Through financial capital and industrial economics cooperation, supply chain finance strengthens the link of banks, corporations and commodity supply chains.The steps of supply chain finance model are:firstly, streamlining the cash flow, logistics and information flow; secondly, monitoring the cash flow, logistics and information flow; finally, providing funds to enterprises.This article focuses on the analysis of the construction financing models. At this stage, the supply chain can be divided into two types:accounts receivable financing and inventory financing pledge.Finally, the thesis takes an in-depth analysis on the barriers to construct the supply chain financing models and present the development of policy and operational recommendations combining with the previous general analysis.Base on the study, at last the paper makes the conclusion that although, in China the development of the "Supply Chain Finance" is still at an early stage and the business scope is also fairly limited, it will be a feasible and good way to resolve the difficulty in SMEs'financing in China at present.The innovation of this article is proposing the reasons of financing dilemma from the perspective of supply and demand, and discussing the mechanism of supply chain finance model to alleviate the plight of SMEs'financing. In addition, this paper also pointed that it is able to alleviate the problems of asymmetric information.