The Applied Research Of Supply Chain Finance In Financing Small And Micro Businesses

Small and micro businesses have been playing an important role in absorbing surpluslabor and pushing forward the urbanization. Since the financial crisis, Small and microbusinesses under the weak link in the production chain are now facing lots of pressures andchallenges influenced by the rising domestic raw material prices, labor costs. And the fundinggap has become a major bottleneck to the restructure and development of Small and microbusinesses. It has become an important proposition of current financial reform to effectivelysolve the problem. Supply chain finance is mainly comprised of account payable financing,which contribute to the dynamic integration of the information flow, capital flow, thus tosome extent solving the problem of information asymmetry. Financial institutions can provideintegrated solutions for Small and micro businesses focusing on the basis of core enterprises,resulting in raising the loan through rate for Small and micro businesses. Thus, supply chainfinance provides a new way of solving the problem of financing in small and microbusinesses.The researcher briefly introduced Small and micro businesses’ financing situation fromthe perspectives of policy environment, ways of financing and financing order and made anin-depth analysis of the causes of financing gap from the perspective of commercial banksand Small and micro businesses, thus proposed a new idea which needs to supply chainfinance to solve the problem of financing Small and micro businesses. Then, discussed thedefinition of supply chain finance, elements and the differences compared with traditionalfinancing models and introduced its domestic stage of development, mode and representativeproducts. Then, introduced the development of supply chain finance in European andAmerican countries and their representative financial products. Later, the researcherconstructed game model between bank and enterprises under asymmetric information andtraditional credit mode, and trilateral game model under the supply chain finance mode which includes banks, core enterprises and Small and micro businesses. Therefore, the thesis made acomparative analysis about participants’ expected return and strategy selecting. Last, putforward the proposal from the prospective of Small and micro businesses government,financial institutions and the government.