Supply Chain Financing Of Small And Medium Steel Companies

From the economic development point of view, the development of SMEs, to promote economic development and maintain social stability is an important force in the national economy, but also an integral part of the economic structure. Financing in the global economy has become a major factor restricting the development of SMEs, small and medium-sized enterprises in the supply chain are often in a weak position, liquidity is often diverted two strong companies, less financing, financing costs are relatively high, and it is difficult to obtain financial support from the banks, which fall into financial difficulties are inevitable. Meanwhile, from the perspective of the overall development of the supply chain, SMEs have been facing financial difficulties will affect the normal production and operation, the impact of other associated companies in the supply chain, supply chain operations of the entire balance will be involved, thus breaking SMEs financing difficulties to adapt to the changing market environment, promote economic development, supply chain financing model emerged, bringing new opportunities for small and medium-sized enterprises financing. Based on previous studies, summarizes the basic application mode of financing small and medium enterprises in the supply chain, finance, and the corresponding risk analysis for SMEs to raise the level of financing capacity and financing recommendations and opinions, and finally to the successful financing Steel Case, conduct validation studies, drawn from SMEs to improve their comprehensive ability departure, multi-master knowledge and financing bank financing products, pay attention to improve their position in the supply chain, the importance of information exchange, the ingenious application of financing instruments, the flexible financing products developed to solve the financial difficulties, promote development and to contribute to the balanced development of the supply chain.In this paper, the use of standardized research methods and case studies form the Combination of small iron and steel enterprise supply chain finance for research and innovation. The article first introduces the background and significance of this study supply chain finance, and supply chain financing research literature were reviewed, recalled into the mode of operation of supply chain finance, risk and steel enterprises themselves in three areas. Next, the article combined with the status quo of supply chain finance study abroad, introduces the basic theory of supply chain finance, SME growth cycle theory and there is credit rationing theory. Secondly, in close connection with the characteristics of the steel industry, introduces the current situation of small and medium steel enterprises financing difficulties and the reason. Then, briefly describes four steel industry supply chain financing model. Divided into static/dynamic pledge mode, after the first fare goods model, guaranteed delivery modes and domestic factoring mode. Then, the case of small and medium steel companies A paper by corporate guarantees to verify the delivery mode of financing through the supply chain financing in order to achieve win-win goal. Finally concluded, supply chain financing for small and medium steel companies is an effective mode of financing small and medium steel companies according to their supply chain is characterized by the implementation of the different supply chain financing programs to achieve the purpose of financing, financing difficulties to solve their own plight.