Supply Chain Finance And Financing Services For Small And Medium - Sized Enterprises

Supply Chain financing (SCF) is kind of self-liquidating trade finance that popularizes in recent years. It is an innovation to the traditional trade financing. In SCF, the financing institutions have closed cooperation with the core enterprises and conduct the financing service under a concrete business. Meanwhile, they subcontract with the professional third party logistic companies for the goods flow monitoring. By this way, they are able to control the risks and provide a competitive integrated financing solution to the small and medium size companies through all key stages with the low interest rate that owes to the superior credit of the core enterprises. In addition, the service scope covering the medium and small companies with good quality exist in the supply chain managed by the core enterprises can bring the economy of scale and scope.Automotive components industry is fast growing to one of the pillar industries of China in recent period. The mature supply chain management, a great number of medium and small companies and huge demands of the capital has paved the way for SCF utilization and promotion in this industry. This thesis has introduced the definition and main characteristics of SCF, enhanced the inevitability and benefits of its existence and established the financial ecosystem for its operation. In the thesis, three operation models of SCF driven respectively by the core enterprise, a specific service platform and3rd party logistic company have been raised with the consideration of the features of automotive components industry. It has analyzed the benefits of each party involved, problem of the business models and explored the trend of SCF implementation in automotive component industry.