Credit Risk Evaluation Of SME Based On Confirming Warehouse Financing Model

With the development of national economy, the status of the small andmedium-sized enterprises (SME) is getting higher. But the shortage of capital cameup in the process of running the company because of its deficiency, severely restrictedthe development of SME, and it was out of proportion with the contribution it made tothe economy and social development. As the industry competition transformed fromthe competition between the enterprises into the competition between supply chains,the banks in China took this advantage and marketed supply chain finance service. Itis a new financing model that is tailored for SME with enormous potential, but it alsoaccompanied by various risks. Thus, it is necessary to study its risks and provide thebasis for banks in providing financial service of supply chain.This dissertation conducts a thorough research on the credit risk evaluation ofSME based on confirming warehouse financing model, the main contents are thefollowing five parts:Part one: the background of the research is introduced firstly, which leads to theimportance of the credit risk evaluation about SME in the supply chain finance.Makes a review and elaborates about the literature at home and abroad, and analyzesthe related theory: the supply chain theory, confirming warehouse finance model,credit risk theory, sets the theory basis for full test of the study.Part two: on the basis of the division standard of SME in China, the dissertationpoints out that the SME must meet certain conditions to become the participants of thesupply chain finance, then defines the concept of the SME in the supply chain finance,and analyzes their characteristics. Uses the game theory to analyze the new type ofrelationship between bank and enterprise in supply chain finance, points out that only they achieve the (loan, faith) optimal state, can they gain the maximum economicbenefits.Part three: the dissertation does specific research about the SME’s credit riskbased on confirming warehouse financing model. First, identifies the credit risk on themode, and analyzes its causes and characteristics. Second, compared with traditionalfinancing mode, the essay points out that although the high credit level of coreenterprise and the reliable future cash flow reduce SME’s credit risk, more risk factorsbrought by the complex trading environment.Part four: through the analysis of the credit risk index of the enterprise intraditional financing mode, points out that the investigation about the single financingenterprise is not applicable for the credit risk of SME in confirming warehousefinancing mode any more. Therefore, the paper starting from the characteristics ofconfirming warehouse financing model, Selects indexes from the following aspects:(1) industry status;(2) the financing enterprise comprehensive strength;(3) the coreenterprise credit condition;(4) the status of supply chain, consequently, we build theSME’s credit risk evaluation index system on confirming warehouse financing model,and through the comparison of credit risk evaluation methods, the paper confirms touse multi-level fuzzy comprehension method to evaluate.Part five: the dissertation chooses distributers in the automobile industry supplychain to analyze. For the downstream distributers, on the one hand, the upstream coreenterprise always use their strong position request them to payment as soon aspossible, on the other hand, due to the limitation of their own conditions, it is hard forthem to get loan from financial institutions. Through the instance to verify the creditrisk of SME based on confirming warehouse financing model is scientific andpractical, then put forward suggestions for the control and guard against credit riskfrom angel of commercial bank and SME.