Study On Application Of Supply Chain Financing In The NB North Link Construction Project

In recent years, with the accelerated pace of urban development and the propulsion of urban-rural integration, the original roads have been overwhelmed, serious traffic congestion and can’t meet the requirements of national economic development. Depending on this reality, building elevated highway turns to a boom in everywhere of the country. But such projects always have characteristics like long construction and payback period, etc. During the process of the projects, there are also some problems prone to happen, such as irrational structure of project finance, capital loss, misappropriation of funds, funds withheld, low efficiency of fund utilization and so on.Firstly, supply chain finance theories are reviewed in this paper. Then we make comparative analysis with the traditional financing methods, and point out the limitations of the traditional financing model, in the meantime, three basic models of supply chain financing are used to analysis that compare with each other.NOL project of NB city is used as a case study in the thesis. We make an overview of the current status of the project and the financial problems faced. The project has characters that a large amount of capital investment, long investment cycle, high investment debt, and high long-term overall revenue, etc. After the overview, there is an analysis in the paper about the negative impact caused by the financial problems faced, including the impact of the construction period, project quality, total investment of the project and engineering safety, etc.In the last, the paper provides a funding solution of NOL project of NB City based on supply chain financing, and also elaborates the details. By combining the commercial acceptance bills and bank factoring, the way can solve the problem of project funding needs.Furthermore, on this basis, the article improves the credit evaluation system of HS group and YX Company, in the meantime, establishes risk analysis and prevention system of HS Group and YX Company and strengthens the supervision and incentive measures of HS group,which is the subject of financing supply.