Research On Inventory Financing Of Small And Medium - Sized Enterprises

SMEs, as an important component of the national economy, play a crucial role incontributing to the economic development and social stability. Since the reform andopening up, SMEs have developed vigorously. They have created employmentopportunities, promoted market competition, provided economic impetus, and raisedmarket efficiency. As China’s market oriented reform is deepening, SMEs, which playas an engine to promote the economy develops fast and well, have become the mostdynamic part in national economy with the greatest development potential.However, because of the poor risk-resisting ability, the prolonged lack ofsufficient credit rating, and the shortage of real asset and third-party guarantees,SMEs are discriminated against in our current financial system, which makes itdifficult for them to conduct financing. The financing difficulty has greatly blockedthe expansion and development of SMEs. Thus, looking for a financing model thatbest suited for SMEs has become the focus of whole society.In this paper, the research object is S enterprise, whose main business is coalpurchasing and saling. During its process of expansion, there comes the demand forcapital. According to the present situation of financing difficulty and S’scharacteristics, I propose that S can raise money by way of Warehouse ReceiptsPledge. First, I’ll introduce the pledge of logistics financial and inventory-relatedtheory. Second, depending on the specific situation of S, I’ll analyze the feasibilityand necessity for it to operate Warehouse Receipts Pledge and design a specific modeland process for it. Third, I’ll show my conclusion that Warehouse Receipts Pledge canincrease profit by comparing the difference between the profits S made before andafter operating Warehouse Receipts Pledge. Also, I’ll make some suggestions on thebasis of my research on S.