A Case Study Of Y Company’s Supply Chain Financing Program

Small and medium enterprises have been playing an important role in the economic development of our country. Since the reform and opening up, China’s institutional mechanisms, policies and laws experienced an outstanding progress, especially the market economy. However, due to the SMEs’ scale and the asymmetric information between banks and enterprises, the difficulty in SMEs’ financing still exists. At present we solve the problem mainly depends on macro policy and the development of financial system. Based on the current situation, to solve the problem effectively, there is still a long way to go. The property of China’s socialist market economy determines the particularity of the financing environment, while the lagging of economic system is pervasive in developing countries. Based on the risk, commercial banks in most cases will not loan directly to SMEs. Therefore, this paper considers that SME, along with its upstream and downstream enterprises, could create a special mechanism to share risks and benefits. Supply chain finance is the way to achieve the above ideas.This paper, based on supply chain finance theory, research on Y company’s supply chain financing project through literature survey, observation and case study. Specifically, this paper is composed of five parts. The first part is the introduction including the research background, content,methods, domestic and foreign research review; The second part is the theory basis of supply chain finance; The third part is the case introduction, including Y company’s basic situation, financing status,financing problems and analyze the premise of supply chain financing; The fourth part explains the necessity of supply chain financing program for Y company, makes a comparison between old and new financing project on financing efficiency and profitability, summarize the problems need to be improved; The fifth part proposes countermeasures and suggestions for better implementation of Y company’s supply chain financing. This paper compares Y company’s financing efficiency and profitability after using supply chain financing, demonstrates that supply chain financing is the feasible measure for Y company’s financing problem, and proposes countermeasures and suggestions for better implementation.