SME Supply Chain Financing Mode And Credit Control Study

In today's Chinese economic and social development process, the number of small and medium-sized enterprise (SME) has been growing. SME, in promoting economic growth, expanding employment, promoting technological progress, creating social wealth, has played an increasingly important role. In recent years, commercial banks have increased the intensity of credit to SME. At the same time, the objective factors, have resulted in the problem of SME financing difficulty, but also restricted the banking industry in the SME credit business's development.An important reason why such a conflict has formed, is that the traditional credit model is to research into SME financing from the perspective of a single enterprise, therefore it is difficult to get rid of financing inherent limitation by result of SME inherent defect. The purpose of this study, is to explore a way not from the perspective of a single enterprise, but the level of the entire supply chain, to re-analyze the model and framework for SME financing as to achieve dual goals of solving the financing difficulties of SME and effective control of credit risk.We find that more and more SMEs produce and support the supply chain around the core enterprise of industrial production, such as upstream and downstream, supply chain relationships. This makes banks can jump out of the traditional limitations of a single enterprise to carry out innovative SME financing, with its core businesses'cooperation relationship in production, supply and sales. The supply chain financing not only enables SME to obtain financing support and promotes the healthy development of SME, but also encourages commercial banks to change the traditional credit culture and speeds up the development of SME credit business and effectively controls credit risk so as to form a win-win situation for the bank and SME.From the horizontal perspective, supply chain financing and traditional financing is different from angle of observation and field of view of SME by bank. One is isolated, the other is linked, which formed another valid path to solve the problem of SME financing. From the vertical perspective, the supply chain includes procurement, production, sales of three main phases, and correspondingly forms three types of financing. The various stages of the main, characteristics, and financing research can form supply chain financing mode for SME.Based on the above ideas and logic, this paper studies the financing situation of SME in China. By combining with the analysis of the financing channels and features, it also reveals the financing difficulties faced by SME and the main reasons for the formation. This paper argues that, in addition to existing financial irregularities, market risks and other objective factors in SME, another important reason is that commercial bank's traditional financing perspective problem.Secondly, upon the status analysis of the supply chain for SME, this paper introduces the concepts of supply chain and structural characteristics, and makes the analysis of the supply chain financing's business credit basis by the perspective of the supply chain management, describes the theory and the basic framework of supply chain financing Through comparing the advantages of the supply chain financing mode with that of the traditional financing mode, it reveals the supply chain financing for the meaning and effect to solve the problems of SME financing.To further explore the specific mode of supply chain financing for SME, a study is made on SME financing's feasibility, specific processes, risk control from the procurement side of supply chain and the sales side. By combining with domestic commercial banks'success stories, it describes domestic factoring financing and order financing as well as its promotion value in more details.Finally, this article focuses on analyzing risk categories of SME supply chain financing and the main content of risk assessment. Meanwhile by the two aspects of authenticity from the transaction and operational risk control, it provides the measure and proposal of the credit control of supply chain financing.The main contribution of this paper is that, combining with success stories of the large commercial banks on supply chain financing, it more comprehensively describes the suitable varieties of supply chain financing and their specific mode of operation for SME. This paper has a certain practical value.