Financing Of SMEs In China Supply Chain Risk Management Research

Since the reform and opening up, in the process of the development of China’s socialist marketeconomy, the SME rapid development, and played an irreplaceable role in China’s economicdevelopment, to become the main forces that support China’s national economic development.SMEs make an important contribution to the economic development status, financial support, SMEsare facing financing difficulties plight. SMEs own inherent weaknesses and banks strict creditaccess number of factors. The emergence of supply chain financing to SMEs on a whole supplychain, good and stable cooperation of the core enterprises rely on the supply chain, the coreenterprise of good credit extended to its upstream and downstream of the SME. Bank no longer willhave to SMEs visits limited to SME credit and financial system, but to examine the status and roleof these enterprises in the supply chain, and core enterprise trade relations, enterprise development,logistics and cash flow of status, as long as the banks on SME credit support assets (inventories,prepayments, receivables fitted models) good monitoring will be able to achieve the isolation of themain credit financing and credit business for the bank to carry out the new SME financing marketperspective.The supply chain financing solutions to SME financing difficulties at the same time, also thebanks are faced with the risk traditional loans, generated mainly from three supply chain financingmodel risk point of departure, from supply chain financing credit risk, operational risk, legal risk,problems in the risk management of our supply chain financing for SMEs, commercial banksshould be established to improve the internal management system, standardize operationalprocesses, interactive information management platform, the establishment of risk early warningmechanism to select strategic cooperative enterprise risk the relocation and effectively manage riskthrough the structural credit arrangements and control of corporate cash flow, in order to betterpromote the development of SMEs in the supply chain financing.