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Study On Credit Decision-making Of Inventory Financing In The Supply Chain Finance

Posted on:2013-10-19Degree:DoctorType:Dissertation
Country:ChinaCandidate:X H YiFull Text:PDF
GTID:1229330395974808Subject:Financial engineering
Abstract/Summary:PDF Full Text Request
Inventory financing is a very important financing means to business enterprises, especially to the small and medium-sized enterprises. Supply chain finance is the innovative services of the financial industry for supply chain under the social division of labor continuing to deepen and deepening of economic globalization. Due to the changes of credit assessment methods, relying solely on the assessment of the enterprises themselves in the past converts to rely on the supply chain as a whole, the SMEs’credit capacity have been greatly improved in supply chain finance. Therefore, in practice, inventory financing as a financial products has been widely used and had a great success in domestic and international banking. However, the theoretical research on inventory financing in supply chain finance has lagged far behind the development of practice, practice development needs urgently the guidance of the relevant theoretical research.From the bank’s point of view, the dissertation has the study on credit decision of inventory financing in supply chain finance. We establish the relationship between the decisions and the collateral value of inventory through product trade relations between enterprises in the supply chain, with the relationship between the collateral value and bank credit decisions, and establish the relationship model between corporate decisions and bank credit decisions, from static to dynamic, from simple to complex, model specific behavior between enterprises and enterprises and banks step by step, and thinking factors of market structure and the others, have a deeper study from multiple perspectives on credit decision-making of inventory financing.First, considering a supply chain consisting of a supplier and a retailer, product market being a typical newsboy model, the retailer applied for collateral loans to the bank with his procurement contract signed with the manufacturer. The dissertation depicted the impact of the enterpriser’s decision on the value of the procurement contracts, with the introduction of the downstream enterpriser’s decision-making to bank’s credit decision model which with downside risk-controlling. We established the basic model of the relationship between corporate decision and bank credit decisions in the supply chain, and built a good credit decision-making model basis to expand and deepen supply chain inventory financing. We determined the analytic type of the loan to value ratio, and then discussed its relationship to the supply chain decision-making factors, the disposal value\the wholesale price and the return rate, and determined the appropriate value range. Finally, the procurement contract in the coordinating supply chain as a special case, we made a further study on this issue.Second, using the size of the surplus product buyback rate to characterize the upstream core enterprises’guarantee degree for the SMEs’inventory financing behavior, the dissertation modeled the bank’s inventory financing decisions, and analyzed the relationships between the bank’s expected profit, with the lending rate, the loan-to-value ratio and the guarantee degree of the core enterprise, and tried to give an explanation for why the bank would require core enterprise to provide return guarantees and what guarantee degree, also to provide an inspiration for the innovative design of the SMEs’ financial products based on options theory.Third, assuming a double Stackelberg game between the core enterprise and the small and medium-sized enterprises, between the banks and the enterprises (the core enterprises and the SME as a whole), the dissertation established the expectation profit maximization models respectively for the SME, the core enterprise and the bank; and then solved the double game by backward, with analysis of the SME product ordering decisions, the core enterprise’s wholesale price decision, the bank’s return-guarantee decision and the loans interest rate decisions. Thinking Game behavior between core enterprises and SMEs in the bank’s credit decision-making process, both to consider the impact of corporate inventory financing decision-making in financial supply chain, and to study the core enterprises how to improve SMEs credit in the complicated game and the deeper reason for the banks to require return-guarantee. The study results have shown that return-guarantee not only had the role of risk-sharing, but also been an incentive for the core enterprises to involve in the control of the SMEs’credit risk.Fourth, considering the credit market competition, the dissertation established the pricing decision-making models respectively for the SMEs, the core enterprises and the banking, and determined the variation relationship between the lending rate and the return-guarantee requirement, then determined ultimately the bank’s credit decision mechanism based on the optimal pricing decisions of the SMEs and the core enterprises,. Studies have shown that the banks’ lending rates and the return-guarantee requirements must to meet specific marginal relationship in a competitive credit market, and if the expected profit of the enterprises are reservations to meet the expectations profit, then the core enterprise’wholesale price, the bank’s return-guarantee requirements and the SMEs’ products quantities ordered at the same time to meet the specific constraints.Fifth, the dissertation included the bank into the product supply chain, and then established the credit decision-making model under the core enterprise’s return-guarantee from the perspective of optimal supply chain system. Firstly, we have established the optimal pricing benchmark, and determined the relationship between the lending rate and the return-guarantee requirements upon the idea of centralized decision-making in the supply chain coordination; and analyzed the conditions for the main bodys to accept optimal pricing decisions, and determined the combination of parameters of the optimal pricing. Finally, considering the banks’ risk-control objectives, we determined further the optimal pricing decisions of the target system. The study results provided an idea for the credit decision coordination mechanism design of inventory financing in supply chain finance.
Keywords/Search Tags:Supply chain Finance, Inventory Financing, Credit Decision, Return-Guarantee, Supply chain Contract
PDF Full Text Request
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