A Study Of The Assistance Of Customers In Financing And Pledge Financing From NY Storage Companies

With the deepening development of China’s market economy, supply chainfinancing, a new-type financing mode, has become an increasingly important financingoption for small-and medium-sized enterprises which lack mortgage finance andcollateral. In order to widen ways of making profits and enlarge customer groups,financial institutions such as banks are also stepping into supply chain financing toprovide financial support for those promising small-and medium-sized enterprises toexpand enterprises and enhance their competitiveness. As a new-type financing modewithout clear and effective regulations on the system of policies and laws, supply chainfinancing still has a long way to go in process and risk control.As homogeneity phenomenon in the present storage companies has been verysevere, it has become more essential to learn from the successful new business modeand offer innovative and superior service. On the basis of providing independentsupervision business, Zhejiang Yongjin Storage Co., Ltd has extended the chain ofproduct service and increased service items to banks and other financial institutionssuch as monitoring market prices of various bulk commodities, subsequent disposal ofthe collateral and process monitoring of the collateral. It also helps the pledgee to trackthe pledges. Based on these, the new mode of financial storage has been put forward.Compared with pledge financing, financial storage provides more control over pledgesto banks and other financial institutions so that it further lowers credit risk.Consequently, the mutual trust among clients, banks and regulators is strengthened andit facilitates small-and medium-sized enterprises’ raising capital so that they can receivefinancial support of banks and other financial institutions more easily. By doing aprofound research on NY Storage Company’s case of pledge financing and absorbingZhejiang Yongjin Storage Co., Ltd’s innovative “financial storage”, this paper aims torevise and modify the mode of pledge financing, as well as improving tangible andintangible service of NY Storage Company. Furthermore, the updating of ideas and thepromotion and establishment of new products like “financial storage” will broadenaccess to profit and improve NY Storage Company’s core competence to a large extent.