Study On Supply Chain Finance To Alleviate The Plight Of SME Financing

SMEs is an important part of a society as well as large businesses. It is an important pillar of economic development and social stability which has played a major role in the absorption of employment, social stability and dynamic economy. However, because of its own articularity, the development of SMEs is limited by various constraints. Financing is one of the most important dilemmas. The access to financial resources of SMEs is not far from proportionate with the position and role in their economic and social development.The study starts by analyzing the present situation of development of Chinese SMEs. It makes a detailed introduction in the present situation of development and financing condition of Chinese SMEs. It describes the background of the generation of financial supply chain. It explains reason for financing difficulties of small and medium enterprises through game analysis, and it describes the advantages and limitations of the supply chain finance in alleviating the plight of small and medium enterprises financing difficulties. It introduces the participation of the supply chain finance-related subjects, as well as the the main financial benefits brought by Supply Chain Finance to all. Then this article introduces financing models and and makes a SWOT analysis of every models based on the relevant theory. It puts forward a new financing model based on the three basic financing models. Based on the theory, this paper describes the business process of Supply Chain Finance by introducing a case in detail. Finally, the article reached the conclusion:First, Supply Chain Finance makes financial product innovation and financing options design to meet the financing needs of SMEs through together the stakeholders in the chain.Second, commercial banks monitor small and medium enterprises effectively by cooperation with the core business and third-party logistics enterprises in close. That will reduce the degree of information asymmetry significantly and ease moral hazard problem in the bank credit operations. Though Supply Chain Finance, small and medium enterprises Strengthen co-operation with the core enterprise business. It also broadens the profit space of commercial banks and logistics companies.Third, the Supply Chain Finance has potential advantages in easing the financing difficulties of SMEs. We should develop the supply chain finance vigorously.