Research On The Securitization Of Supply Chain Factoring Assets

Due to the problem of information asymmetry in China's SMEs,the financial services they gained are very scarce,and the financing costs are high.The problem of “funding difficulties and financing” has long hindered the stability of China's SMEs.On the other hand,the scale of accounts receivable of Chinese enterprises has increased year by year,resulting in huge amounts of social precipitation funds,resulting in inefficient use of funds.The problem seriously slammed the vitality of China's economic development.In this situation,the securitization of supply chain factoring assets provides an effective way to solve the financing problems of SMEs and the problem of accounts receivable.Supply chain financial factoring asset-backed securities is a new type of financial instrument that began to emerge in China in 2017.It realizes the organic combination of three forms of financing: supply chain finance,reverse factoring and asset securitization.Firstly,it uses supply chain finance to alleviate Information asymmetry,realize the extension of core enterprise credit status.Secondly,it uses reverse factoring to achieve economies of scale,reduce transaction costs and information search integration through batch operations,and revitalizes social deposit funds.Thirdly,it uses asset securitization to improve asset liquidity and the acceptance of capital market so that it can expand the financial support of the factor.This paper believes that the product has significant advantages in reducing information asymmetry risk,achieving economies of scale and expanding financial support.However,there are problems in product design that the debt risk is too concentrated and the credit enhancement mechanism is not fully utilized.In order to further demonstrate the superiority of the product,this paper adopts a comparative analysis method,from qualitative and quantitative perspectives,demonstrating that the supply chain factoring ABS has significant advantages compared to other financing methods.Based on the above analysis,this paper believes that supply chain factoring ABS has significant positive significance for solving the financing dilemma of SMEs in China and the problem of accounts receivable.The article concludes with questions about the market liquidity and debt concentration risk of the product.,put forward corresponding suggestions,hoping to provide some help for the improvement of the product.