The Exploration Of Advance Payment Financing Mode Based On Supply Chain Finance

In recent years, domestic commercial banks provide supply chain financing services programs to help many small and medium-sized business solve the financing problems. It's also important for enhancing the stability and the overall value of the supply chain. Thereby it is getting more attention in both the industrial and academic filed. This paper mainly research the cost-effective situation of the Supply Chain Finance (SCF) and the financing decision of the bank from the perspective of the financial needs of partners of the SCF and the risks the bank faces.Firstly, discuss the basic theory. This paper studys the concept and the basic elements of SCF, then trade cost theory, entrust supply theory and the asymmetric information, the self-liquidating trade finance theory are analyzed and explained, and then it describes the features and advantages of SCF. All of these establish the theory basic of studying after.Secondly, the article conducts a qualitative investigation of SCF models. Through the analysis on SCF's cash shortfall, dividing the SCF into three models:Accounts Receivable Financing(ARF),Inventory Financing(IF) and Advance Payment Financing(APF). and Accounts Receivable Financing(ARF).The article has a specific research to each model from demands, ways and operation process, risks of partners.Thirdly,this article has a quantitative research on APF model which is a representative model of SCF. Combining the processes and risk factors, make a quantitative research on the finance interest rate decision of bank and explore the supply chain performances under the influence of APF model. We can conclude that APF model is superior to the traditional supply chain financial model. It can enhance the overall value of the supply chain and the participants'level of retune.Finally, the article uses a case study to illustrate and test the preceding models. The case is from a real one and adjusted to modelling. Through numerical calculation, this part uses the results to verify the conclusions of the model and at the same time illustrates how to use the model to support decision-making activities.