Risk Evaluation Of Inventory Financing For Small And Medium Size Enterprises In Supply Chain

Though the financing difficulty of SMEs(Small and medium-sized enterprises)is not a new topic,there is still no feasible solution,which limits the further development of SMEs.SMEs have encountered many obstacles in their development due to the small scale of assets,low credit level and weak anti-risk ability.Among these obstacles,the most prominent one is the general lack of collateral assets to apply for loans from banks and other financial institutions in order to alleviate the pressure of insufficient liquidity in production and operation.However,with the emergence of supply chain financing,this problem has been effectively solved.This paper mainly studies inventory finance and risk assessment under supply chain finance.Firstly,we will explain the relevant concepts and theories of supply chain finance,and discuss the difference between supply chain finance and traditional financing mode.At the same time,we will analyze the inventory financing mode of supply chain finance,discuss how the inventory financing mode of supply chain can alleviate the financing pressure of SMEs,and then discuss the supply chain financial risk and inventory financing risk.According to Basel Accord,we divide inventory financing risk into credit risk,operation risk and market risk.Secondly,we will establish the index set of inventory financing risk evaluation for SMEs in supply chain by using analytic hierarchy process according to Basel Accord and relevant literature,and then modify the index set and the weight thr ough questionnaire and delphi method.Then,we will select the inventory financing cases of SMEs and use the evaluation index system to evaluate the risks in this case.Finally,according to the three main risk points,we will give suggestions on the risk control of inventory financing for SMEs in supply chain.Through analysis and investigation,we have established an evaluation index system of inventory financing risk for SMEs in supply chain,which consists of three first-level indicators: credit factor,operation factor and the market factor.Through hierarchical analysis,the index system includes 10 second-level indicators and 22 third-level indicators.What’s more,we will evaluate the weights of such indicators through delphi method and comprehensive analysis.credit risk accounts for 39.19% of the three major risks.Among Credit risk,SMEs’ financial situation and credit factors accounting for 33.10%,account for the largest proportion.Logistics enterprises’ credit factors are the second,accounting for 26.21%.Core enterprises’ credit and its industry status factors are the third,accounting for 17.85%.Operational risk accounts for 32.08% of the three major risks,and the third-party logistics enterprises factors accounts for 75.00% of Operational risk,while the factors about management level of commercial banks accounts for the other 25.00%.The weight of market risk in the three major risks is 28.73%,among which the price changing factors account for 80.00% and the nature of pledge factors accounts for 20.00%.After statistical calculation,we quantitatively analyses the main sources of risk in inventory financing of a SME named C company.For these risks,we give improvement suggestion from the view of enterprises themselves,commercial banks,core enterprises and logistics enterprises.Finally,we will the suggestions for risk-controlling system on credit risk,operational risk,market risk.