Research On The Mitigation Effect Of Supply-Chain Finance On Financing Constraints Of Smes

As an important part of national economic development,small and medium enterprises(SMEs)play an increasingly important role in creating employed positions,increasing market efficiency,promoting technological innovation,transforming economic developing mode and maintaining stable development of the society.However,due to a series of reasons such as its small asset scale,less core competitiveness,weak internal control and lack of enough mortgage assets,the financial services of SMEs seriously mismatch with SMEs' strategic position and its economic contribution.The difficulty and high cost in financing has become a bottleneck restricting its survival and development.With the rise of supply chain production mode,Supply-chain Finance(SCF)has received attention in the global market.As a new financing mode,supply chain finance centering on core enterprise provides comprehensive financial services to the core enterprise and its upstream and downstream related enterprises based on the real deal relationship,which provides a new way to solve the problem of financing of small and medium-sized enterprises.In the meantime,with the background of further deepening financial disintermediation and gradually accelerating interest rate market trend,the loan growth rate of banks and other financial institutions decreases,the proportion of bank and financing institutions loans in total enterprise financing declines,and traditional commercial banks' profit model on interest rate spread has significantly impact.Therefore,supply chain finance has become an opportunity for banks and other financial institutions to seek more SME clients.Based on the literature reviews of the positive impact of supply-chain financing in SMEs,the paper discusses the connotation of supply-chain finance using asymmetric information and transaction cost theory.Firstly,the paper makes comparative analysis between supply-chain finance and traditional financing model by operating environment,operating mechanism,cost and benefits.Secondly,the paper discusses the impact of supply-chain finance on SMEs financing constraints and puts forward two hypothesis available for examination through the influence of supply-chain finance on SMEs cash holding policy derived by theory.Meanwhile,the paper makes detailed research on the current situations of SMEs financing based on financing method,and explains the financing constraints of SMEs.Then,the paper makes an empirical analysis of the effect of supply-chain finance on the financing constraints of SMEs,and constructs a model to test whether the development of supply chain finance can alleviate the financing constraints of SMEs to a certain extent based on the cash-cash flow sensitivity model proposed by Almeida,Campell,and Weisbach.It is found that financing constraints exist in SMES in China,but with the development of supply chain finance,the degree of financing constraints of SMEs has been alleviated.Therefore,the government,financial institutions such as banks,the third party logistics enterprise and SMEs should enhance cooperation to actively promote the development of Supply Chain Finance.