Research On Benefits And Risks Of Logistics Financing Based On Procurement Executive

In recent years, SMEs at the supply chain upstream or downstream have beendeveloped rapidly because provide outsourcing services for dominant firms.Dominant firms transfer financial costs to SMEs, so SMEs short of funds. Banksrarely lend to SMEs because fixed assets can be used as collateral of SMEs is limited,and do not have good credit rating and sound financial system, caused the financingdifficulty of SMEs.Logistics finance as a new financial service, provides an effective way offinancing for SMEs, based on the different stages in which production cycle andfunding gaps of financing enterprises, it is classified into financing based on advancepayment, inventory and accounts receivable. Purchase executive as innovative modelsof advance financing, refer to logistics enterprises purchase goods for financingenterprises, by right of trading business capacity and strong fund strength, logisticsenterprises have the ownership of goods, provide logistics services and financing andsettlement services for financing enterprises, obtain interest margin and transactionrisk.It is found that there are a few papers about purchase executive at present,through collating relevant documentation. As purpose to analyze benefits and risks ofpurchase executive financing mode, analyzing the structure and characteristics ofpurchase executive and the main role of participants in purchase executive mode, andcomparisons with other logistics financial mode, it lays the theoretical foundation forresearch on purchase executive. For purchase executive financing, analyzing thebenefits and risks of logistics enterprise in the two situations that price fluctuation andstochastic demand. Believe that logistics enterprise increases profits, but assume theloss risk from financing enterprise defaults. Based on the above conclusions, purchaseexecutive financing mode have optimized separately with price fluctuation andstochastic demand, analyzing the benefits and risks of the bank, researching on theloan-to-value ratios decision of down-rise-averse bank. In the situation of stochasticdemand, introducing buy back contract into the three-level supply chain consistedwith the suppliers, logistics and finance enterprises, research on logistics enterprise’sbuy-back decision how to effect the benefits and risks of the bank and logistics and enterprises. Comparing the logistics enterprise’s benefits before optimized purchaseexecutive financing mode with the logistics enterprise’s benefits after optimizedpurchase executive financing mode, it is found that the logistics enterprise’s benefitsafter optimized purchase executive financing mode is more. And there is a caseconfirms the above conclusions, the conclusions can be used as theoretical guiding forthe purchase executive practice.