The Study Of Solving SME’s Financing Problem－Supply Chain Financing

Small and medium-size enterprises (SME) as a significant component of our national economy plays an important role in promoting economic growth,providing jobs and keeping the society stable. However, many SMEs are faced with difficulties in the process of development, especially the financing difficulty. Compared to their contribution to the economy, their ability of obtaining financial support is not matched. The financing difficulty has become the main restriction of their development.The supply chain financing which this paper studies is an innovative finance product that the commercial banks create to solve the SME’s financing problem. Supply chain financing’s uniqueness lies in that it breaks the traditional limitation of a single enterprise, reaches an height of supply chain and makes the credit of the core business extend its upstream and downstream businesses based on the logistics,capital flow and information flow. By incorporating the bank loan with supply chain management the supply chain financing opens a financing door for the companies in the supply chain especially for the SMEs.The paper firstly analyses the difficulty in SMEs’ financing in China and its main reasons, then points out the supply chain financing as an effective way can solve SMEs’ financing problem. Then the paper illustrates the conception, features, basic models and practical significance of supply chain financing. At last, the paper puts forwards some problems we may face in the future and gives certain suggestions.