Research On Supply Chain Finance Of Small And Medium Commercial Banks

The problem of financing in small and medium-sized enterprises (SMEs) will directly affect the steady operation of the whole supply chain, and the resolving of the problem has become the key to improve competitiveness of the supply chain. Currently, for those small and medium commercial banks which have limited strength and depend on SMEs, the traditional mortgage lending model of fixed assets of SMEs could hardly meet their financing needs. As a result, only if the small and medium commercial banks make a breakthrough in the loan-guarantee mode can the credit market of SMEs be expanded.Supply chain finance could alleviate the difficulty of financing in SMEs, small and medium commercial banks should become the main force in the supply chain finance market. At the beginning, this paper analyzes the background of the supply chain financing and its difference among traditional credit extension model, also, business models are introduced; then, the author focuses on the necessity to carry out supply chain finance in small and medium commercial banks; followingly, typical case studies are applied to elaborate how to carry out supply chain financing; finally, based on the perspective of supply chain, the paper put forward possible risks while developing supply chain financing through game analysis, besides, the corresponding risk prevention measures are mentioned.This paper argues that small and medium commercial banks could effectively expand the SMEs credit market through carrying out supply chain finance business. However, the conduct of the business should closely rely on stable supply chain on the background of real trading as well as introducing and binding of core enterprise credit, the default willingness of the financing enterprises will directly subject to the loss of withdrawing from the current supply chain. Consequently, the analysis of the supply chain financing business should be based on the perspective of supply chain, correspondingly, for small and medium commercial banks, the key of business risk prevention is to seize supply chain information timely and completely.