Research On Loan To Value Ratio Of Integrated Supply Chain Finance

There usually exists a core enterprise among the members of supply chains,which has strong production capacities,a higher credit level and adequacy capital.The core enterprise is capable of easily getting direct financing from banks.There also have a large number of small and medium enterprises in supply chains.Because of their low credit rating and lack of assets,these mall and medium companies are difficult to obtain financing directly from banks.In order to solve the problem of financing difficulties in SMEs,the members of supply chain usually choose to carry out supply chain financial services,such as the delay payment through the supply chain or credit bundle to ensure SMEs financing from banks.The domestic enterprises has developed an innovative supply chain finance business,i.e.,the integrated supply chain finance business.We discuss the concrete operation flow and summarize the characteristics of the innovative supply chain finance business in this paper,and find that the integrated supply chain financial has characteristics of flexible and timely response.We build a simple supply chain finance business model which is composed of a single financing enterprise and a single logistics enterprise for our study.Based on this model,we analyze the income of banks,SMEs and third party logistics enterprise.Through the analysis of the default of SMEs,we find the boundary of loan to value ratio of the third party logistics enterprise,and propose a method to get the optimal loan to value ratio.The method given in this paper is theoretically able to determine the optimal loan value ratio of SMEs through types and quantity of their goods.For the third party logistics enterprise in integrated supply chain logistics finance business,this method is a very efficient means to guarantee the maximize profits.In addition,because of its test on the interest rate of the corresponding loan,this method is helpful for the logistics enterprise to control the loan qualification threshold of small and medium-sized enterprises effectively,and therefore to avoid some small and medium-sized enterprises which have higher possibility to default.