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Based On Supply Chain Financial Ease The Small And Medium-sized Enterprise Financing Difficulties

Posted on:2013-03-05Degree:MasterType:Thesis
Country:ChinaCandidate:J S LuFull Text:PDF
GTID:2249330395951114Subject:Finance
Abstract/Summary:PDF Full Text Request
Medium and small-sized enterprises ("MSEs") take a very significant position in a country’s economy. Thanks to their diversified and flexible business operation, they play an important role in the social stabilization and economic development. So far such effects can hardly be replaced by other businesses as for creating job opportunities, improving the market efficiency, increasing the international trade, vitalizing the market innovation and maintaining the social stability, etc.Chinese MSEs have made a rapid development since the inception of the reform and opening-up drive. However, Chinese MSEs, compared with their counterparts in the developed countries, are still on the initial stage and the difficulty to obtain the finance becomes the major obstacle for the further development of Chinese MSEs. Although the Chinese government has adopted a variety of policies for support, and commercial banks are committed to be improving their financial service, the problems on financing the MSEs still cannot fully solved.The supply chain finance is created and introduced against such background. As a new financing service mode by the commercial bank, the supply chain finance fuels the business development in the service for MSEs. The commercial bank, by means of connecting the core enterprise with the MSEs and integrating the capital, trade and logistics on the chain, makes it possible to fully obtain the operation and financial information from the MSEs, break through the traditional restriction for financing a single enterprise and transform the original high-risk credit business on the "retail" basis to the low-risk credit business on the "wholesale" basis. This finance helps the commercial banks effectively engage themselves into the market for financing MSEs and relieve the predicament of the MSEs to obtain finance.With the introduction of the core enterprise, the supply chain finance effectively solves a series of problems such as the information asymmetry between the commercial banks and MSEs, the adverse choice, moral risk and the credit rationing so caused in financing MSEs. In the meantime, the supply chain finance also serves as a valuable reference for the reform and the innovation of the profitability mode of Chinese banking and financial institutions. This dissertation is composed of5parts. The contents of each chapter can be described as follows:Chapter Ⅰ is the Introduction, which raises the question, analyzes the background and significance of the topic, state the domestic and foreign study on this area, explain the method and main content of the research as well as the innovation and limitation of this dissertation.Chapter II analyzes the characteristics, role and significance of MSEs, reflects the important status of MSEs in the national economy and reveals their demands for financial service on different stages. Chapter II also states the features of the Chinese MSEs in obtaining the finance and raises the problems confronting them by comparing the reality of obtaining finance by Chinese MSEs and by their foreign counterparts. Chapter III sets up the viewpoint that the supply chain finance can be used to relieve the MSEs’difficulty in obtaining finance. Taking into account the theory, mode and product of the supply chain finance, Chapter III expatiates that the supply chain finance mode, by introducing the core enterprise and running an finance arrangement on a systematic basis, serves to effectively solve the problems such as information asymmetry between the commercial bank and MSE, credit rationing and predicament for the MSEs to obtain finance, etc.Chapter IV runs the check over the effect of the supply chain in improving the MSE’s credit rating and solving their difficulty for obtaining finance through establishing the credit rating system combined with the practical cases of the supply chain.Chapter V concludes that the supply chain finance is an effective approach to solve the problems such as information asymmetry between the commercial bank and MSE, credit rationing and predicament for the MSEs to obtain finance, etc. In addition, the supply chain finance is also one of the options for Chinese commercial banks to transform their operation structures. Finally, Chapter V raises the questions that require a further research.
Keywords/Search Tags:supply chain finance, finance for medium and small-sized enterprises, information asymmetry, credit rationing, risk evaluation
PDF Full Text Request
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