Research On NJ Bank Supply Chain Financing Business Model

Thirty years of reform and opening up, along with the rapid development of Chinese national economy, small and medium enterprises achieved a great leap forward in ensuring its steady economic growth, solve the employment, achieve scientific and technological innovation, improve people's living standards and so on., are playing an increasingly an important role. However with the formation of a strong contrast, the financing position of SME in China has played its role in the national economy which is not very appropriate. Financing difficulty has become a major trouble restricting the development of SME. On the one hand, SME can not develop due to lack of funds, so they need financial support from commercial banks urgently. On the other hand, commercial banks have adjust the customer structure step by step, and they began to switch the focus to the development of SME. Since the mutual attraction between banks and enterprises, why they still have problems with financing? The reason is that the information between banks and enterprises are asymmetrical badly, so the commercial banks wanted to offer loans to SME but they did not dare to do the loans. Thus, how to build bridges interoperability between banks and SME has become a major issue.In this context, supply chain financing as a new financing model emerged. The so-called supply chain financing, refers to the bank through a review of the entire supply chain, to identify a core of large enterprises, and to the core business as a starting point, to provide financial services to small and medium enterprises related to the supply chain. Of supply chain financing services will link the core of enterprise supply chain and supporting small and medium enterprises become more closely between, to a certain extent, to overcome the problem of information asymmetry between banks and SMEs, thus easing the supply SME financing difficulties of the chain, improve the comprehensive competitiveness of the entire supply chain, but also broaden the business channels of commercial banks, so that the commercial banks-on the basis of strictly controlling the risk of expanding profit margins.Then, this paper describes the commercial banks, for example NJ bank supply chain finance business model, key design, and "Xin Chao loan" products under the Soviet Union supermarket fruit suppliers empirical cases. Although the supply chain financing was significantly higher than traditional credit strengths, but is not a panacea, NJ Bank in the implementation of supply chain finance business, there are still some limitations. Finally, the paper presents the development of supply chain NJ limitations of bank financing business, and this optimization proposal.