A Study On The Evaluation Of SME’s Credit Risk Based On Online Supply Chain Finance

SMEs (Small and medium enterprises) play an important role in chinese economic development, but because of some factors, such as its size, non-standardized secured asset management, non-perfect financial system and so on, it is difficult for them to finance from the banks. SMEs financing is a problem which puzzles both themselves and the banks. While supply chain finance, as a financial business, appears to solve this problem. Previous studies on supply chain finance focus on its operation mode and risk assessment, particularly on credit risk assessment. With the vigorous development of supply chain finance, some domestic commercial banks began to realize that it is not so convenient or efficient. Then, ShenZhen Development Bank to be a pioneer, began a revolution in online supply chain finance. As for the online supply chain finance, there is few existing research. Taking those into account, I select the credit risk problem of online supply chain finance as the research object, simultaneously to provide some reference when commercial banks develop this business.In this paper, through reviewing previous financial credit risk evaluation index system, I summarized five factors which impact the credit risk evaluation. Then I determined the specific indicators can affect credit risk of online supply chain finance through expert research method. After summarizing, I established a line of credit risk evaluation index system of online supply chain finance creatively in this paper. Then after secondary scoring by experts, the final index system is the most representative and comprehensive. Lastly through a comparative analysis of the index weight and the risk assessment methods, I chose entropy weight method combining gray comprehensive evaluation method for the evaluation of this paper.In the section of case study, based the business cooperation background between Ping An Bank X branch and a well-known company S, I selected three suppliers H, D, L, which are SMEs, for the study object. With the established evaluation index system and evaluation method chosen in the paper, I invite some qualified business managers and risk operations personnel who are aware of those three SMEs to score. Then according to the score result, I calculated the value of their credit risk assessment. The case study demonstrated the usefulness of the index system and evaluation methods, and simultaneously provided some reference for X Branch to choose cooperate SMEs.