The Research On The Supply Chain Financing Model Of Chinese Small And Medium-sized Enterprises And Its Application

Nowadays, small and medium-sized enterprises (SMEs) play an irreplaceable role in the national economic and social development,which is widely recognized and approved by the whole society. At present, SMEs registered in Chinese ministry of commerce are more than 10 thousand,99% of the total registered enterprises. The industrial production, sales, profit, total exports have already accounted for 60%,67%, 40% and 60% of the whole country. SMEs circulate 90%of realm of retail outlets and SMEs provide the approximately.75% of the urban employment opportunities. SMEs have become an important pillar of national economic boom. However, the credit services which the vast number of SMEs enjoy are not corresponded with their economic contributions. Many SMEs lost in financing difficulties which seriously hinder further development. By 2008, the global financial turmoil triggered by the U.S. subprime mortgage crisis caused a significant portion of the SMEs facing with the capital chain rupture, then portfolio decline, capital pressure, investment reduce, adverse influence spread, etc. How to find effective ways to solve the problems became the practice and exploration targets of domestic and foreign academic circles. Chinese scholars for SMEs financing theoretical study began in late 20th century. At present domestic for SMEs financing difficulties just stay and concentrate in the macro policy suggestions, development of financial support system, perfecting laws and regulations, and system construction, etc. Considering the present situation and development of financial market conditions, to solve the financing problem of SMEs in these ways need quite a long time. Financing difficulties still restricts the SMEs' survival and development. The author thinks that the solutions to these problems not only lie in conscientiously implementing the corresponding strategies, but also in seeking the appropriate solutions from the micro aspect. Therefore, this paper proposes a new-type financing mode meeting the SMEs' financing needs--- supply chain financing model(SCF model). SCF model evaluate the credit risk of SMEs from the overall evaluation of supply chain and pay more attention to the stability of the whole supply chain, the true trade background of SMEs, the credit and strength of counterparty. And also SCF model emphasizes self-liquidating in order to gather more SMEs into the credit service scope provided by financial institutions.Firstly, this paper defines the criterias of SMEs, namely the qualitative and quantitative criteria standard. What's more, the paper introduces the connotation of financing mode and compares the similarities and differences of financing model and financing way and points out that financing model is a series effective combination of financing way. And according to the financing situation of China's SMEs at present, this paper divide the traditionl financing model into market-leading model and government-leading model and market-leading model includes Wenzhou model and Pearl river delta model. Next, this paper points out the limitations of the two main kinds of financing model mentioned above. These limitations were gradually revealed in financial storm of 2008,causing many SMEs nail-biting when faced the financial storm and arised a series of problems such as capital chain rupture, high cost of financing, low financing efficiency etc. Then, in order to make up for the limitations of the traditional financing model of SMEs and makes more SMEs out of financing dilemma, this paper introduces a new financing model for SMEs----SCF model and expounds the connotation and key elements and features of SCF model and analyses the application advantages of SCF model, including financing is more flexible, more convenient for direct financing, more convenient to obtain bank loans, more convenient to get non-governmental financing. Finally, this paper introduces three main forms of SCF model ---- future inventory financing, financing warehouse, pledge financing. And also this paper offers us a specific case of the YHGT company which provides a good reference model for more SMEs applying SCF model.The author looked into a lot of materials through the Internet, library, etc and used normative research combined with case studies, macro analysis method combined with micro analysis method. Then the conclusion is that SCF model can be specifically applied in acquisition phase, production phase and launch phase with the forms of future inventory financing, financing warehouse, pledge financing. Thus financial institutions evaluate SMEs's financial situation and credit risk through the whole supply chain and lower the credit threshold and provide more services for more SMEs. Therefore, the SCF model will become a new and effective way to solve financing difficulties and have a bright future.