The Analysis Of Supply Chain Finance Applies In Construction Machinery Industy

After recent years of rapid development, the upstream and downstream enterprises of construction machinery industry are enduring poor survival statements in the context of macro economy overall downward trend, especially in facing the significant financing difficulty.Being hard and expensive to be available and with several unknown risks, financing problems make it almost impossible for small and middle enterprises(short for “SMEs”) to get loans from mainstream financial institutions. Meanwhile, the core corporations with overcapacity of construction machinery industry choose to take their own actions according to their advantages and endowment under great transforming pressure. The minority of enterprises who have the core resources hope to turn their advantages built up in long-term into profit through financial businesses, while the majority of SMEs have a stronger preference for solving financial problems. However, due to several restrictions of traditional financing models, it is imperative to build up a new one to ensure normal operation of cash flow in enterprise and industry. As the result of natural evolution of industrial upgrading,supply-chain finance with a solid foundation overturn the way that traditional finance does and combine the industrial and financial capital. Thus, supply-chain finance is undoubtedly the strategic key of future industrial upgrading.This paper will firstly interpret fundamental principle of supply-chain finance to establish the theoretical foundation for the general research orientation by stating its concept and development process. Based on the deep analysis of the status, classification and development trend of the industry, this thesis will not only discuss the supply-chain finance model and apply the principle of supply-chain finance to financial services of the industry, but also set up new advantages for the core corporations and solving the financing difficulties for SMEs and expand the supply-chain and customers base at the same time. All these works will be done by focusing on the financing needs of the upstream, downstream clients, core manufacturers and the procurement, terminal sales and other major trading links in the industrial chain. Finally, the practical suggestions for supply-chain finance of construction will be provided to promote innovation in the supply-chain finance model of the construction machinery industry through the analysis of actual case of XYZ.