The Supply Chain Finance Design Of ZD Micro-credit Firm

With the deepening of the financial reform, relying on its simple loan procedure, not paying attention to pledge and other advantages, Micro-credit companies have become an important part of the financial system.To the end of March2013, Hunan province had approved85micro-credit companies’construction, loan remaining sum was6.151billion RMB. Every micro-credit company positively introduced many loan types, and opens up new financing channels for the SMEs. However, due to the micro-credit companies’development is still in primary stage, micro-credit companies want to develop quickly in the fierce market competition, must open up new services. While the supply chain finance is a promising area. micro-credit companies which provide supply chain financing services, can create a new profit model, relieve trapped business, and reduce business risk. In the meantime, small and medium enterprises could get a lower interest rate loans from micro-credit companies, reduce financing costs, relying on high credit degree advantage of core enterprises in the supply chain, Therefore That the micro-credit companies put the supply chain financing services into practice is an effective method to solve the financing problem of the SMEs.This paper takes Hunan ZD micro-credit firm as the study object, with combinations of the background that ZD firm expanded actively LiuYang fireworks industry business in recent years. The paper targets LiuYang X fireworks firm, analyses its experiencing supply chain financing bottlenecks currently. Considering the actual development, from the perspective of its supply chain, the paper innovatively proposes two characteristic modes of supply chain financing solutions. The specific design includes operational processes, main points, benefit analysis and risk control. This paper aims at exploring a new loan model for ZD micro-credit firm in LiuYang fireworks industry business, and also providing a reference idea for other companies’loan services within the fireworks industry through the case’s supply chain financing solutions design of X firm. In the meantime, the supply chain financing services can be expected to reduce the operational risks of single main business, expand the financial services capabilities, sure of stable operation of the company. At last be able to reach a win-win result between ZD micro-credit companies with fireworks firms.