SGDL's Innovational Practice Of Entrusted Loans Based On Supply Chain

After the implementation of financial control by the government, the state-owned commercial banks start to tilt against the state-owned economy. Under this background, the entrusted loans boom up. As the leading enterprise in fan industry in China, Xi'an Shangu Power Co. LTD actively carries out entrusted loans business which is based on the supply chain recent years. By supporting the upstream manufacturing enterprises through loans, it successfully improves the competitiveness of the entire supply chain. By the help of the trading relations and interest relations of chain members, the core enterprise of the trading chain plays a leading role in the entrusted loan based on industry chain. This kind of entrusted loan financing mode breaks through the traditional "fundamental" problem in the process of credit, not only ease the capital mismatch phenomenon, but also realizes the innovation that finance supports the development of industry chain. This case illustrates the background and motivation of entrusted loans of SGDL which is based on intra-industry division of labor and financial system. In addition, it analyzes the mode, mechanism of risk control and effect of entrusted loans based on supply chain. In this paper, we try to explore the characteristics and basic operation mode of entrusted loans based on value chain through the analysis and study of typical case so as to offer valuable reference for supply chain finance's healthy development.