Research On SMEs Supply Chain Financing In China

SME financing difficulties have been of concern for national economic scholars, and have been put lots of efforts on studying on it. With global recession, particularly glumly economy in Europe and the United States, the survival of SMEs facing a more severe test. SMEs in China are bound to encounter a shortage of capital or unsmooth liquidity, leading companies can’t operate well, missed a lot of opportunities, limiting business expansion, and even cause bankruptcy in the end. As the backbone of our national economic development, SMEs play a very important role in activation in the market economy and revitalization, increasing employment opportunities and promoting technological innovation.Supply chain finance start-up and development in our country is very late, not yet ripe. With the economic development and diversified financial demand of enterprise, there is huge potential room to develop. Thus, a planned and healthy development of supply chain financing, to help solve the problem of financing small and medium enterprises, is the urgent task.This paper’s conclusion based on the theoretical studies by scholars is: SMEs financing difficulties caused by the fundamental reason is that the asymmetry of information. Supply chain financing, this new financing model, make up the shortage of traditional credit problem, which can effectively solve the problem of financing SMEs. It is a brand new model that commercial bank or financial institution grasp sufficient information of supply chain management and leading enterprises credit level, to meet their financing need, develop and provide personalized and diversified products and services by evaluation of whole supply chain’s credit. At the same time,with the co-operation between the participants, supply china financing widen the SMEs’ financing way.Based on the supply chain financing model and case deeply analysis, this paper describes the situation of supply chain financing development, the applicable characteristics of different financing models, business processes and financing effects and its potential risk and corresponding measures.This paper also give some suggestion on developing supply chain financing:from three aspect of enterprise themselves within supply chain, bank, financial institutions and government, how to carry out and promote SME supply chain financing business. Enterprises within the supply chain should establish their own good the "common interests chain " and "credit chain", improve enterprise management system and regulate the financial system; cultivate talents by learning professional skills in finance,so that they can grasp market trends and enhance risk identification of supply chain financing and management skills; meanwhile, we should develop the third-party logistics service companies.Banks and financial institutions should build information service platform, standardized customer information data management system, optimize and improve the SME credit assessment and approval process; according to the different financing needs, design personalized financial products and services; enhance staff quality and overall business risk management skills by professional training.Government should strengthen the awareness of developing supply chain financing, establish development funds, to stimulate and encourage the development of supply chain financing services; build good credit management system and legal environment.Break the bottleneck of traditional supply chain financing, solving financing difficulties of SMEs; bank not only widen their business scope expand the customer by financing model through innovation, but also promote the development of financial markets in diversify; logistics enterprises in addition to providing traditional transportation and warehousing services business, expand their business scope deeply through the supply chain financing; supply chain finance’s advantages is reducing credit risk, lower the costs weaken the information asymmetry.