| With the ever-increasing competition between the supply chain and supply chainfrom the business and enterprise, the bank also began to shift from services for theenterprise as a whole supply chain services, and develop the supply chain financeproducts actively. Among them, the financing business, as the basic order, has graduallyexpanded from the area of international trade to supply-production-sales of whole chain.As a bank a credit innovation varieties, purchasing order financing is on the purpose tosolve the problem of financing for SMEs.In recent years, under the dual pressures of overcapacity, production costs haverisen sharply. The profitability of China’s iron and steel enterprises is declining,2.43%,2.57%,2.55%, which is the average return on sales of China’s iron and steel enterprisesin2009-2011, steel the industry must find ways to produce in order to cope with theharsh environment to reduce costs, increase sales profit. A big proportion of thefinancing costs of the asset-liability ratio has been maintained at a high level of iron, andsteel industry’s share of the cost of production is a very large impact on the upstream anddownstream industries, through the application of innovative supply chain financingproducts, reduce overall supply chain financing costs, relying on many of the core ironand steel enterprises SMEs occupy a favorable position in the harsh environment ofcompetition. Order financing business is an innovative credit financing products.Companies are eager to break the financing the bottleneck through this non-traditionalfinancing method; however, there are still many risks under these new financing productsfor banks in practice. How to control the risks effetely became the key to promote thebusiness widely. This article analyzed in detail on the order financing business processesand risk management in the actual operation of the iron and steel enterprises, combinedwith the success stories on orders financing business promotion. |
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