Analysis On Supply Chain Finance Financing Models And Its Risks In China

As the global credit crunch, the global market demand for Supply Chain Finance isincreasing. In the supply chain, upstream and downstream enterprises, especially smalland medium enterprises, are confronted with much pressure in the improving the terms ofpayment, reducing procurement costs and improving inventory turnover ratio. SupplyChain Finance can easily help small and medium enterprises get bank loans, and reducethe risk of bank credit, bringing banks derived deposits and rich intermediate businessincome.The purpose of this paper is to discuss the financial supply chain can alleviate ourcountry’s small and medium enterprises difficult financing problem. If Supply ChainFinance can effectively alleviate the current situation of small and medium enterprisefunds, not only small and medium enterprises will get funds, Commercial Banks will alsobenefit, availing themselves of this opportunity to achieve business strategictransformation.This paper content mainly includes the Supply Chain Finance research background,industry characteristics, analyzing Supply Chain Finance present development situation athome and abroad. This paper analyzes the Supply Chain Finance three financing models,and its similarities and differences. Next is The Supply Chain Finance risk factors,respectively putting forward the corresponding measures. The final part is case analysis,combining theory with practice, from the perspective of real cases, to explore the positiverole of Supply Chain Finance for small and medium-sized enterprises financing.Finally, as a conclusion of this article, we ought to view Supply Chain Financecomprehensively. It brings opportunities and also challenges. Small and medium-sizedenterprises and Commercial Banks can make full use of Supply Chain Finance, achievingwin-win situation, thus promoting the social economic development.