Research On Risk Control Of Guaranty In The Supply Chain Inventory Financing

With the development and prosperity of our social economy, small and medium-sized enterprises(SMEs) grow rapidly, and need more capital. But so many reasons including small scale, low prestige and weak ability result in SMEs unable to acquire enough liquidity, which causes the serious financing difficulty. Therefore, as a new financing mode especially designed for SMEs, supply chain finance comes into being. Through the integration of logistics, cash flow and information flow, supply chain finance revolves around the core enterprise in the supply chain, and provides comprehensive financing services for upstream and downstream firms to promote the stability and circulation of supply chain on "production-supply-marketing". Thus it can effectively reduce the bank credit risk, solve the financing difficulty of SMEs, and enhance the competitive power of the whole supply chain. On the background of financing difficulty for SMEs, this paper briefly introduces the related concepts, characteristics and meanings of supply chain finance. Then, with the risk control points, confirming storage financing, accommodating warehouse financing and accounts receivable financing will be discussed and comparatively analysed. By constructing mathematical model, this paper focuses on how to set the best loan-to-value ratio in the confirming storage financing and accommodating warehouse financing, which can effectively lower the bank loan risks and boost the supply chain finance business.For the confirming storage financing and accommodating warehouse financing, this paper respectively establishes a loan-to-value ratio model with controllable risk on the aim of maximizing bank’s expected profits and gets relative analytical formula. In condition, the matlab software programming is used for numerical simulation through several important parameters including loaner’s probability of default, buy-back price, initial/default deposit ratio, market price of guaranty, market effective circulation speed and liquidation ability of logistics enterprises. It turns out that loaner’s probability of default and market price of guaranty are the key factors; buy-back price and initial/default deposit ratio are hard to increase sharply in the real confirming storage financing; market effective circulation speed and liquidation ability of logistics enterprises need to be considered under the condition of enterprise’s high credit and stable price of guaranty. So the sensitivity analysis provide the scientific basis for commercial banks to carry out the supply chain finance business.Finally, this paper discusses how to better the supply chain financial services, and puts forward relevant policy suggestions and enlightenment on the role of bank, financing enterprise and government respectively.