Research Into The Financing Issues Of M Company Based On Supply Chain Finance

As the foundation of the national economy and an important part of national economy entities, SMEs are not only an important cornerstone for the development of national economy, the adjustment of industrial structure and the promotion of employment, but also an important force to promote economic transformation and upgrading. While they have had a lot of opportunities in the global economic integration process, SMEs are facing a more complex and volatile market environment. SMEs can not meet the needs of enterprise funds through internal financing, at the meantime the disadvantages of private lending make it unable to solve their financing problems in a fundamental base. Therefore, SMEs are still applying commercial bank credit financing as the main means of financing. However with the inherent imperfections of SMEs and the conventional credit mechanism of commercial banks, enterprises have suffered many limitations in the traditional financing model, it is difficult for them to obtain mortgage credit from commercial banks. Therefore, the financing of SMEs has become an important factor of restricting the development and growth of these enterprises. Although the government and commercial banks have been improving the situation, the financing difficulties of SMEs have not been overcome. As an effort to ease the financing difficulties of SMEs in the status quo, this paper will present to you the following supply chain financing mode.The core concept of supply chain financing is by long-term cooperation between the core enterprises and SMEs in the chain to coordinate the flow of funds between enterprises, to break through the bottleneck of funding SMEs so as to enhance the competitiveness of the entire supply chain. Supply chain financing will effectively practice the supply chain management theory, and improve the efficiency of SME financing and reduce its financing costs and risks in the business. By means of the chain can the core business of credit amplification be able to enhance SMEs credit rating, to strengthen the financing capacity, thus to ease the financing difficulties.This thesis, in line with the principle of practicality and starting with case studies, selected M company as a research object. According to the actual situation of M Company, it will analyze its current financing situation and the problems based on it at this stage, and then the many causes for those finance issues of M. Finally, the thesis will design a chain financing model for M for solving its financing cost, efficiency and risk issues.The purpose of this paper is by studying M’s financing situation and financing difficulties to explore a new financing model that will get along with M’s features, and then to promote the application of this financing mode in similar businesses, thus to make SMEs choose an appropriate financing model for them so as to optimize the allocation of resources and achieve the healthy and sustainable development of enterprises.