| The commercial banks and other financial institutions will provide loans to small and medium-sized enterprises(SMEs)with higher interest rates,or refuse to accept their loan requirements due to the following reasons:the poor credit status,imperfect financial systems,the lack of adequate mortgage guarantees etc.Resulting in the financial needs of SMEs is difficult to be met.SMEs financing is an important aspect of long-term obstruction of enterprise development.Small and medium-sized enterprises play an important role in supply chain operation.How can we improve the financing ability of SMEs through financial product innovation in the context of supply chain management,has become an inevitable requirement for the stable development of the supply chain.This article is set as a supplier and a retailer,the supplier is a small and medium-sized enterprise that is subject to capital constraints.The retailer is a better-performing company than the supplier.In the reverse factoring contract,the supplier can use the retailer’s credit to finance,that is,the supplier may transfer the accounts receivable to the financial institutions such as banks before the expiry of the accounts receivable,and obtain the working capital at the retailer’s loan interest rate.This paper analyzes the benefits for the supply chain under the two financing methods,traditional external financing and reverse factoring financing,and reveals the mechanism of the reverse factoring financing to create value.Taking into account that suppliers may have difficulty in financing from outside,this paper also compares the benefits for the supply chain under the advance payment discount plan and reverse factoring financing.Whether it is from the perspective of supplier and retailer,or from the perspective of the overall supply chain,the advance payment discount scheme is better than the reverse factoring financing,indicating that the cooperation of supply chain can improve operational efficiency of the entire supply chain. |
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