Research On Supply Chain Finance Financing Model Of Commercial Bank

Supply Chain Finance (SCF) is a kind of service model which greatlydeveloped by many international commercial banks in recent years. It isinextricably linked with supply chain of production and applicable financialproducts are designed according to characteristics of purchase&produce andsale between core enterprises and SMEs to solve supply chain members capitalrequirements, reduce their cost and improve the efficiency in the use of funds.As the supply chain industry has its own business management model,trading style and risk factors, in this paper, we study SCF financing model onthe basis of automotive industry. Analysis the structural characteristics of theautomotive supply chain, also analysis the financing needs of enterprises inthe supply chain, and learns the SCF practice from domestic&foreigncommercial banks. According to upstream and downstream of the automotivesupply chain and characteristics of the three basic models of SCF, commercialbanks provide receivable financing to parts supplies and prepayment financing&inventory financing to downstream distributors. And then use the gametheory model to analyze the key factors of the three financing models,Concluded: in receivable financing mode, the important factors affecting thebanks to lend money and control risk are total accounts receivable, interestrates, pledge rate and the amount of loss caused by financing companies forbreach of contract; in prepaid receivable financing mode, the important factorsaffecting the banks to lend money and control risk are loan interest rates, bank’core business and defaulting companies punishment; in inventory financingmode, the important factors affecting the banks to lend money and controlrisk are interest rate, the expected value at the end of the inventory period andpledge rate. Through real-world examples to explore how commercial banks tocarry out the automotive industry supply chain finance business. The last partput forward some suggestions: strengthen the supply chain financeprofessional management, training of specialized personnel, strengthentechnical support, product innovation, speed up the logistics buildingproposals, hoping to provide some reference value to commercial banks.