Research On The SEMs’ Credit Risk Management Of Supply Chain Finace

In the past few years, supply chain equity trading has become a new way offinancing, which effectively solved the financial dilemma of the medium and smallenterprises. And it changed the traditional single credit facility mode. According tocharacteristics of industrial chain and the details of commodity trading, regardingthe core enterprises as financial supporters, the supply chain financing servicespecially credits the medium and small enterprises, thus effectively transfers therisks. With the increase of supply chain financing service and the growth of market,how to evaluate the credit risk during the financing process has become the focus ofthe banks’ credit service. Therefor, it has a great meaning to perfect the credit risksystem of supply chain financing.This paper starts from the history of supply chain’s development, andintroduces the definitions and main elements of supply chain financing. In order toset up a suitable index system, this paper specifically introduces the three basicfinancing modes of supply chain financing, including the application scale of eachmode and the service procedures, and it analyzes each mode’s basic procedures anddevelopmental advantages. Then in respect of Game Theory, it analyzes the practiceof banks and enterprises in the supply chain financing. The conclusion of theanalysis is that the supply chain financing can lower the default risk of enterpriseloan and increase the amount of financing from the banks. It is a positivedevelopment to the whole credit market, revealing the advantage of supply chainfinancing service. According to the characteristics of supply chain financing, thispaper sets up an evaluation system which combines the main body and debit, then itsets up a risk evaluation mode by means of Boundary Logistic Regression Method.This systematically evaluates the enterprises’ credit risks in quantitative angle,reducing the limitations of solely depending on the experts’ analysis about supplychain financing service. This paper also compares Boundary Logistic Model andLogistic Model. The result shows that Boundary Logistic Model is better thancommon Logistic Models in overall model fit and accuracy. Empirical research getsthe same conclusion as was mentioned above, which means under supply chainfinancing mode, medium and small enterprises get permission for loan much moreeasily. Finally, the researcher provides some suggestions on perfecting supply chainfinancing risk administration based on Empirical Analysis.