Research On Credit Level Of Farmers’ Supply Chain Finance Based On Guaranteeing

Rural financial imbalance between supply and demand, farmers have to solvetheir own problem of shortage of funds, loan guarantees relying on industry chain isthe most effective measures. The purpose of this study is on the basis of comparativeresearch on policy-based guarantee financing, mutual guarantee financing andcommercial guarantee financing, put forward in favor of farmers who are in supplychain to obtain guarantee financing, solving the problem of farmers loan guarantees.Based on the existing literature, We propose the theoretical framework of loanguarantees for farmers who are in supply chain,analysis the impacts and effect of loanguarantees mechanism to credit level. Impacts mechanism established credit access,credit structure, credit tied, guarantees alternative, pre-lending screening, cash flowcontrol, loan risk compensation, guarantee risk diversification mechanism,loancontract and other measuring indicators. guarantee risk diversification mechanisminclude capital sources, supplementary capital, guarantees of institutionalindependence, guarantee institutions risk management, security agencies efficiency.loan contract include lending rates,line of credit and loan term.In this study, we use survey data to do sample t test to reveal the difference in theimpacts and effect of loan guarantee mechanism to credit level in different modes.Another using case studies, find representative cases in different modes,analysis thebackground of cases, operational processes and the impact of the mechanism to graspthe richness better to go to the farmers supply chain financing.Accordingly in thisstudy, in the impacts of loan guarantees mechanism to credit level, commercialguarantee financing is rational, which is established by leading agricultural enterprisesbased on superiority of supply chain.To the effect, commercial guarantee financing iseffective in improving the farmers’credit capacity.But to the reduce of credit risk,policy-based guarantee financing is effective.The main reason may be fromgovernment credit which has strong role. According to the rural economy and ruralrealities current features of financial transactions, The Government should takeappropriate measures to develop commercial guarantee financing which is suitable forrural financial transactions. Integrate more government credit to commercialguarantee financing to raise the level of farmer credit.The main innovation of this paper: on the basis of comparative research onpolicy-based guarantee financing, mutual guarantee financing and commercialguarantee financing, commercial guarantee financing is more effective to raise thelevel of farmer credit,and integrating more government credit,the effect is more better.