Research On Credit Risk Management Based On The Construction Machinery Industry Supply Chain Finance

The companies in the construction machinery industry chain have different bargaining power varying with the place in the supply chain. On the one hand, the supporting firms’ operating funds is occupied by the core company of the chain freely for the weak position of bargaining and facing the predicament of shorting in funds. On the other hand, the core companies are arrested for the country’ Foreign Exchange Control’s policies and the pressure of returning funds when they import material, parts and accessories and export products. Hence some commercial banks propose supply chain finance in construction machinery industry, which promote the development of construction machinery industry and bring out some prominent problems problem at the same time. Specifically the credit comment system is lagged and the methods of controlling risk are fragmentary. Regarding of the credit risk management problems of proposing supply chain finance in the construction machinery industry chain, this paper sum up three main business modules supply chain finance basing on the current theory of supply chain and supply chain finance. Namely inventory and accounts receivable finance to solve the funds problem of upstream firms, prepayments finance to solve the problems of downstream firms funds problems. Then make out an evaluation indexes system which is proper for the construction machinery industry consisting of industry development, core companies, financing firms and state of supply chain and build the credit risks evaluation model by using the support vector machine(SVM).and use the LIBSVM soft to train and predict the data. Empirical study suggests that this method can effectively help the commercial banks provide the supply chain financing services. Regarding to controlling the supply chain financial risk, the paper ends in providing some constructive suggestions.