Supply Chain Financing Research About Commercial Banks To Small And Medium-sized Enterprises

Small and medium-sized enterprises (SMEs) are a more and more important force in the creation of social wealth, increase income and employment absorption in the economic development of our country. The number of SMEs in our country have accounted for more than99%by the end of2008, but it can’t get the enough funds from banks because of its operating volatility and lack of mortgage collateral. According to the annual reports of some commercial banks in recent years, SMEs get the credit resource only about30%, however the credit resource of SMEs at the middle western regions is less. So the financial support for SMEs from the commercial banks has become the current theoretical and practical focus. Supply chain finances become the best method among variety measures with its unique advantage.Although the scholars have taken multifaceted study of supply chain financing and put forth relevant financing models and measures, which basically for the developed regions, however there are few models and measures which can’t be applied to the Midwest region, lacking of reality operability. The condition between the eastern and midwest is a big difference on account of weak financial infrastructure, the small number of core enterprises, the lagging concept of industrial clusters and lack of financial professionals in China’s Midwest regions.So on the basis of previous studies, this paper makes a research on how banks use the supply chain to solve the financial problem of SMEs in Midwest regions, and put forward the importance and necessity of supply chain finance for banks and SMEs in Midwest. This is the innovation of this paper.First of all, this paper elaborates the relevant theory of supply chain finance and analyzes the operating mechanism of the existing three financing models, finding that the supply chain financing is the best way to solve the financial problem of SMEs. Second, the author expounds that a lot of commercial banks have launched supply chain financial service, but instead of economic gap between eastern and midwest regions there is a problem of unbalanced development in the eastern and western regions. We concludes that developing supply chain finance service requires not only theoretical guidance but also a basis in reality. Third, analyze the necessity of developing supply chain financing service from the perspective of commercial banks, SMEs and local economy and illustrate a successful case about a starch company making use of supply chain finance. Finally, in view of existing situation in Midwest regions, this paper puts forth the corresponding countermeasures from the government, commercial banks and enterprises.