Paper Industry Supply Chain Financing Model And Risk Analyses

Currently, the central bank is tightening the monetary situation. Banks are facing the funding constraints. "The difficulty of financing" has become a bottleneck in the development of SMEs, especially in the paper products industry. For the upstream paper factories, raw materials, finished products are out of their occupation. The amount of money is large and the cash flow cycle is long. The middle distribution channels are lack of large traders. They are mostly small and medium sized distributors. At the same time, the homogenization of competition, and overcapacity are the leading promoting factors of higher sales costs and lower sales. The lower small-scale printing and packaging enterprises are in low market share due to the high priced paper products and financial constraints resulting.This essay aims to integrate the flow of the logistics, financing and information by the current existing supply chain, financial means of financing and through the analysis of current situation of corporate finance and the characteristics of paper industry. Then the problems of the financing in the paper factory can be solved. The sales mode’s distribution channel can be changed. The current situation of small and medium sized printing and packaging companies with low market share can be bettered. In the first part of the essay, it analyses the current situation and the problems of the middle and lower reaches of paper industry by study of the financial characteristics of the supply chain, supply chain financing the basic model, the current supply chain finance application status. In the second part of the essay, according to the time in stages to Z paper trading company as the starting point for inventory, it gives a detailed theoretical analysis and practical application process of products storage and accounts payable financing pledge (security against warehouse). At the same time, it compares the advantages and the disadvantages of the products storage and accounts payable financing pledge and lists all the reasons. Furthermore, based on the analysis above, this essay assumes a city in which the introduction of the definition of warehouse facility and principle of operation, the formation of trade bills warehouse-style paper. The last part of the essay analyses the pledge of inventory, accounts payable (security against the warehouse) to finance positions in pattern recognition are given the appropriate risk control measures.