Research On Logistics-Finance Service Innovation

Nowadays, SMEs are playing a growing and critical role in our national economy and supply chain activities. However, financing has been a key factor limiting the development of SMEs, which has troubled local authority, financial departments, as well as intermediary agencies. Thus, the solution of how to solve the SME’s financing bottleneck has become an important research inquiry. SMEs’ financing problems are an increasing concern among academic researchers, and financial institutions. As a new service model, logistics financing makes the concept of’integration of logistics, capital flow and information flow’into reality. It involves three parties for the pursuit of win-win solution. They are financial institutions, SMEs and logistic businesses. How to carry out logistics financing services means new profit growth points for parties of suppliers, purchasers, logistics businesses and banks. Logistics financing service offers a solution for logistics businesses and banks to extend credit to SMEs for the sake of security, based on personal property as SMEs’pledge.Guided by the philosophy and concept of logistics financing, and relevant previous research findings, the present study designed a questionnaire and made a survey on SMEs’demand of financing demand. Based on diversified demand of different types of SMEs, a creative solution is designed for Lin Yi branch to better service SMEs with the participation of logistics businesses for join profits. The present study is structured into four parts. Part One introduces the background of the research design, its aim and significance. Part Two presents the theoretical foundations and reviews previous research literature at home and abroad. Part Three presents the case study design. Firstly, the status quo of logistic financing in China is discussed, with a focus on its problems and challenges. Secondly, the growing Lin Yi market is introduced highlighting the potential and prospective demand to develop a logistic financing service business. Thirdly, a survey on SMEs demand for financing is conducted and analyzed. Fourthly, based on industry-specific and market-specific demand for financing services, a solution is creatively designed so as to extend credit to SMEs by the joint efforts of banks and logistics businesses. The solution is grounded on combined efforts of three parties, banks, SMEs and logistics businesses to harvest profits through the exchange of risk control and property delivery. Part Four is a proposal for how to maintain a healthy and growing business of logistics financing in China. Part Four is a concluding remark on the present study. It not only brief reviews the study design and its findings, but also points out the limitations and ideas for further study.