On The Financial Service In China's Supply Chain

This essay aims to discuss the development of supply chain finance and its influences on enterprises or parts involved in a supply chain. The author firstly shares with you some background information of supply chain finance's origin, suggesting that this financing channel is actually a sort of capital charging and trading activities in the market, which are determined to meet the capital demand of producers, suppliers and other different parts in the chain. Second, the author deeply analyzes thecharacteristics,affects and influences of supply-chain financing in three aspects------product pattern,involved parts and relevant regulations. It is concluded that supply chain finance offers strong financial supports to the stabilization of the whole chain, cutting down financial and operating costs of both suppliers and buyers, and strengthen their overall competitiveness. Furthermore, by offering this financing product, banks have been more focused on the trading risks, and risk assessments no longer target the involved enterprises but the deals made between them. As a result, more medium- and small-sized enterprises are able to meet the customer standard of banks, which introduces a brand-new solution to their financing problems. The last but not the least, by analyzing the development Status of supply chain finance and its main problems , the author suggests an overall planning and some specific strategies for the future development of China's supply chain finance.