Research On Factoring Financing Decisions Of Accounts Receivable In Supply Chain Based On Blockchain

Since the financial market credit system is underdeveloped in China in traditional supply chain finance(SCF),the current financing method of accounts receivable(AR)still takes recourse factoring as the principal thing,while the mainstream in the international factoring industry is non-recourse factoring.As a new generation of financial technology(Fintech),the credibility and transparency of blockchain technology can effectively control the buyer’s default risk in trade credit,help upstream small and medium-sized enterprises(SMEs)suppliers obtain financing through non-recourse factoring,and then affect the operations and financing strategies of the supply chain.From the perspective of buyer’s default risk,this paper investigates the supplier’s and the retailer’s financing and operations decision-making in non-recourse factoring of accounts receivable(AR)in the supply chain based on blockchain(BC-NF mode).It introduces the retailer’s repayment probability when the market demand is insufficient and the operating expense of blockchain firstly,then establishes the supplier’s and the retailer’s expected profit models by using Stackelberg game,solves the retailer’s and the supplier’s optimal decisions by using backward induction and analyzes the influence of the retailer’s non-default probability on the retailer’s and the supplier’s expected profit by numerical simulation.To obtain the advantages and value of the application of blockchain in non-recourse factoring,it takes the recourse factoring of AR under the traditional supply chain(NB-RF mode)as a benchmark and compares these two financing modes.The main results of this paper are as follows: First,When the retailer’s non-default probability in BC-NF mode is within a certain range,the optimal order quantity will be higher and the optimal wholesale price will be lower than that of NB-RF mode,which is a win-win situation for supply chain members.Second,BC-NF mode can at least transfer the buyer’s credit risk faced by the supplier and even improve the supplier’s expected profit.Third,although BC-NF mode improves the retailer’s repayment obligation,the expected profit of the retailer is higher than NB-RF mode to the greatest extent.Fourth,from the perspective of supply chain,BC-NF mode has great advantages in buyer’s default risk control and improvement of supply chain efficiency,it can also bring Pareto improvement to the supplier and the retailer at the same time to a certain extent.This research has some theoretical and practical significance.It plays a supplementary role in the existing SCF literature and the research of SCF based on blockchain.It can also provide decision-making basis and development suggestions for stakeholders such as SMEs,blockchain platforms,supply chain networks and financial institutions.