| During the period of economic transition in China, there is a contradiction between idle funds and difficult financing of SMEs. With Online Supply Chain Finance (OSCF) presenting a trend of informational and specialization platform, we analyze the transaction linkage of OSCF to meet the SMEs financing need online and realize the end-to-end SCF decision support. Though Ping An Bank, CITIC Bank, China Merchants Bank has launched the " online Supply Chain Finance " or " Electronic Supply Chain Finance " or other similar concepts platform to provide financial services including financing based on advance payment, the inventory or receivable accounts in recent years, fragmented phenomenon among banks and business model easily copied have resulted in serious homogeneous competition, numerous business process with non-standardized, great operational risk with less control, difficult product risk pricing and other issues. With the typical characteristics as transaction financial products, this paper argues that OSCF is a kind of Internet finance product. Its entire transaction is composite service, which consist of a series of elementary service executed sequentially or concurrently or conditionally according to certain timing under the condition of corresponding triggers. As object-oriented Petri Net technology has strict mathematical semantics and graphical modeling tool, it can describe the objects’ relationship and nature of dynamic behavior directly. Consequently, the paper use object-oriented Petri net method for decomposition of business processes, analyzing how the elementary transactions are linked upon business flow, logistics, information flow and capital flow circulation, and intuitively describing transactions inherent linkage mechanism of OSCF based advance payment/inventory/receivable accounts, to make its development toward prosperous platformization, processes modular, risks controlled effectively and product priced reasonably. To sum up, the main contents of this paper and innovations are as follows:(1) This paper refers to numerical control term "linkage" to define the "transaction linkage", reflect and summarize the transaction-linked characteristic of OSCF including the linkage among the main participants, platforms and online to offline service transactions. The entire transaction of OSCF is a transactional finance business, constituted by the interaction of e-commerce transactions, online payment transactions, online financing transactions, online logistics transactions. Moreover, OSCF system and "transaction linkage" are described with object-oriented Petri Nets.(2) The current SCF model is mainly divided into three types, which is financing based on advance payment, the inventory or receivable accounts. This paper comparatively will analyze the transaction linkage process of typical OSCF models, digging the similarities and differences in business processes and risk points. Risk control and business modules reused as a starting point, the paper construct transaction linkage model for financing based on advance payment, the inventory or receivable accounts respectively, to make business processes standardization.(3) This paper argues that transaction linkage of OSCF is the foundation of its collaborative innovation and risk control, which is beneficial for business processes synergies from standardize processes, product innovation, improvement of business efficiency and capital turnover rate, strengthening relationship and reducing transaction costs. It indicates that operational risk along with transaction linkage process, credit risk of a supply chain and the transactional credit risk of SMEs are the special risks of OSCF, which should be prevented and controlled according to the sources of identified key risks, and then provide some theoretical guidance for OSCF product pricing. |
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