Research On Financing Of Supply Chain Under Capital Constraints

Affected by the COVID-19 for many years,small and medium-sized enterprises have suffered heavy losses and are in a difficult situation.There are many restrictions for them to maintain their operations or hope to seize opportunities to expand their scale in the context of unsealing.Supply chain financing,as a new financing method,has developed rapidly and has become an important way for small and medium-sized enterprises to reduce financing difficulties and challenges,becoming a growth point for financial institutions to develop financing activities.Small retailers often find it difficult to choose between various loans and their portfolios.Therefore,facing this scenario,it is very important for retailers to choose financing and operational decisions.Based on this,this article considers credit rating and bankruptcy costs,and takes a secondary supply chain composed of a supplier with abundant funds and a retailer with limited funds as the research object under uncertain market demand.Simultaneously considering the impact of different repayment sequences in portfolio financing,we aim to maximize our own interests from the perspective of retailers.By comprehensively applying theories such as finance,supply chain management,and operations research,this study aims to study the optimal financing and operational strategies of retailers,and compare the advantages and disadvantages of different financing models.Firstly,this article constructs various financing model frameworks from the perspective of retailers,and introduces various complex factors,including comprehensive credit ratings for retailers,bankruptcy costs when retailers cannot repay bank loans,and the impact of different repayment sequences in combination financing.Next,we discussed the issue of retailers in a single financing model.In the case of a single financing mode,retailers can only choose one of bank loans or trade credit.This study shows that in the case of a single financing mode,the choice of financing mode for capital constrained retailers depends on the interest rate of trade credit,the interest rate of trade credit with equal profits and the adjusted risk premium rate.If the interest rate of trade credit is lower than the critical value,retailers will choose trade credit;Otherwise,it will choose a bank loan.When the interest rate of trade credit is equal to the critical value,retailers always place more orders in trade credit than in bank loans.Compared with bank loans,trade credit can better alleviate the problem of double marginalization and improve the efficiency of the entire supply chain.Then the problem of portfolio financing was studied.In the case of portfolio financing,retailers can choose any financing portfolio consisting of bank loans and trade credit.This study shows that when the bank loan is repaid first,when the interest rate of trade credit is low,retailers only choose trade credit;When the interest rate of trade credit is at a medium level,retailers choose a financing portfolio consisting of bank loans and trade credit;When the interest rate of trade credit is high,retailers only choose bank loans.For priority repayment of trade credit,when the interest rate of trade credit is low,retailers will choose a single financing mode to place orders;When the interest rate of trade credit is large,the financing and ordering policies of retailers will be affected by the bankruptcy cost coefficient and the adjusted risk premium rate-if the bankruptcy cost coefficient is relatively low and the adjusted risk premium rate is small,retailers will not choose trade credit.Finally,the above propositional conclusions were analyzed and validated through numerical examples,providing reference for financing and operational decisions for retailers with limited funds in reality.