Research On Supply Chain Financing Of Tongyu Yifahe Soybean Products Company

This paper introduces the financing conditions as well as the industry situation of Tongyu Yifahe Soybean Products Company. Company is mainly engaged in deep processing of soybean. The main products are soybean protein isolate(SPI). It is one of the leading high-tech agricultural industrialization enterprises of Jilin Province.Currently the company is facing an intense financing situation. The company needs to construct more financing channels for the future development. On this basis, this paper analyzes the reasons of financing problems of the company from the perspective of an agricultural products processing enterprise, small and medium-sized enterprises(SMEs) from the corporate level and the macro environment of supply chain environment. First, the company can only obtain low amount of financing by high cost from banks by the limiting of the size and the credit quality. There’s no enough supports for the technical improvements and equipment updates of the company. Many enterprises have little information for supply chain financing or government policy information. The relevant preferential measures are eventually unable to implement on the target groups of small and medium-sized enterprises effectively.In view of this situation, this paper proposes the supply chain financing(SCF) to solve the problems above. Supply chain financing is the amalgamation of the upstream and downstream SMEs on one supply chain. It relies on the credit quality of the core enterprise, so that SMEs could enhance their financing credit quality and get low interest financing loans. Supply chain financing holds daily trading cash flow asa source of repayment, so that the use of the loan is guaranteed. The risk of bad debts is also reduced from the perspective of the banks. Company can duplicated apply SCF for in the future operation. At the same time, SCF also provides ideas for open capital bottleneck. Supply chain financing has a variety of products, such as purchase order financing, accounts receivable financing, accounts payable or prepaid accounts financing and inventory financing, etc. It can be operated conveniently for different enterprises and different business sectors. So the supply chain financing would be the solution of the existing condition of the Tongyu Yifahe Soybean Products Company.The paper designs supple chain financing model and scheme for the company. It introduces three cost income models for the company, which are accounting receivable financing, prepaid accounts financing and inventory financing with the specific implementation steps. The company could directly apply the model in actual use.The supply chain financing also needs the support and maintenance with the help of banks, logistics companies, government and society from all aspects, to provide protection for the smooth implementation of the model. The companies on supply chain have to manage and develop to build healthy supply chain integrity and corporately. The bank should strengthen the risk control mechanism and train professional personnel in order to provide more quality products and services for enterprises. On the other hand, the information platform should be implemented as soon as possible to share the resources between companies, that the problem of asymmetric information could be solved. The government should improve the relevant laws and regulations to guarantee the completion of the financing process. As a result, more consideration from the community experts and scholars is needed in the future. More preferential policies and high quality financing products should be developed as well. Therefore more SMEs could be promoted to use the supply chain financing and to make the contribution to the economic development of our country.