Research On Bank Financing For Smes Supply Chain Strategy And Applied

In China, credit financial difficulties of Small and Medium-Sized Enterprise (SME)are very common, which triggered a series of economic and social problems. On the onehand, not only this is no sound financial system to support, but also there is noacceptable collateral to the bank. On the other hand, China commercial bank‘s loaninnovation system lags behind the SME credit demand.With the deepening of China’s financial reform and the speeding up of interest ratemarketization, the commercial bank’s profit is shrinking. There is a big pressure toextend profit margin. Considering its own development, Commercial Bank innovatefinancial service tools, Develop SME loan business, not only can solve the financialdilemma of SME, but can also promote the commercial bank’s business.In all types of financial innovation for SME’s financing demand, Supply ChainFinance (SCF) provides a path worth exploring. The economic competition in the futureis not between enterprises, but between supply chains.Bank provide a full range offinancial services to the whole supply chain. This will solve the cash flow problems ofSME supply chain, as well as to promote the integrations of the supplychain.Meanwhile, it bring a huge market of the comprehensive business, like loans,settlement, financial management and financial advisory.Therefore, as a small sizedbank in China, there is practical significance on how to promote supply chain financingaccording its own loan technology.In this thesis, we will analyze the supply chain structure and the weak position ofSME, based on the summarizing of the supply chain financing and the theory ofrelationship lending.We will explain the core concept and operation mechanism ofsupply chain financing,so that we can compare the pros and cons of supply chainfinancing in the SME.With the association of the management characteristic andlending technologies of ZSRC bank,we can choose the supply chain financing productcombination according to loan risk and cost benefit. Taking ZSNS as an example, theyhave build a credit scoring system, approval system, loan interest rate pricing systemfor SME supply chain financing.ZSNS bank also use specific case approved the supplychain financing’s operability, feasibility and practicality.The research of supply chain financing model in the thesis is from ZSNS bank’s point of view. It’s useful. We hope this research can provide reference for financialinnovation in other medium-small sized bank.