Study On Financing Decision Of Supply Chain Under The Prepaid Account

Financing has always been a big problem for SMEs.SMEs themselves have low credit,information is not transparent,financial is not sound,development instability.Because of these " defects ",the financial department is not willing to its credit,mainly to spend a lot of manpower and material resources to investigate the background of the enterprise before " adverse selection " risk.After lending need to be doubled,banks,examiners often go to the enterprise to check,to avoid " moral hazard ".This makes the banking credit process complex and cumbersome.Moreover,banks will choose not to lend when the loan risk and supervision costs are too high and the transaction is uneconomical.Therefore,in practice,SMEs are difficult to finance through commercial loans.However,with the market competition from the competition between individual enterprises to the industrial chain,the " supply chain finance " is born,the membership status in the supply chain is different,there are some large or core value enterprises,using its advantages from upstream and downstream enterprises to better their accounts receivable,or prolong the payment period,occupied a large amount of funds.Through the intervention of banks,and using the high credit rating of core enterprises,the capital of low financing cost is introduced into the supply chain,to some extent,the financing of SMEs has brought new opportunities.Banks no longer only focus on the financial statements of enterprises,but also pay less attention to the situation of individual enterprises,but pay more attention to the transaction objects and partners of SMEs,and put forward the service plan for the specific financial service needs,For example: advance financing,inventory financing,accounts receivable financing.Net export factoring and other products and services,under the framework of supply chain,provide new financing services for node enterprises on the supply chain,especially small and medium-sized enterprises.As a kind of strong financing mode,supply chain finance has attracted wide attention in the academic circles.In this paper,the supply chain finance is studied from the perspective of the financing needs of the members of the supply chain and the risk faced by the financial institutions".This paper introduces four financing models of supply chain finance and its operation process.In this paper,we mainly study the prepayment financing in the mode of supply chain finance.In the face of the shortage of funds and payment of small and medium-sized enterprises(retailers)and the core enterprise of the supply chain(Supplier)two level supply chain composed of the prepayments in the confirming warehouse financing mode and after the first shipment financing mode as the research object,combined with the risk factors,quantitative and qualitative research.This paper analyzes the initial margin and interest rate decision of the bank,and the retailer’s ordering decision,and probes into the coordination degree of the two financing modes to the supply chain and the influence on the main body of the supply chain.The related financing decision model is established.First,the paper establishes the model of confirming warehouse financing,analyzes the initial margin decision of the bank and the interest rate decision of the bank.Establishing the revenue function model of suppliers,core enterprises and banks.The results show that:(1)the bank is willing to charge less margin when carrying out the confirmation warehouse financing,and the risk of carrying out the confirmation warehouse financing mainly comes from the credit of the core enterprise.(2)there is an optimal order quantity of the retailer,which is equal to the optimal order quantity of the supply chain under no condition.(3)in the verification warehouse,the supply chain participants in the increase in revenue,to achieve a Pareto improvement,confirmed warehouse financing increased supply chain revenue.Second,the establishment of the supplier,the core enterprise and the Bank of the three party cooperation after the first goods financing model.Research shows that:(1)the first paragraph after the goods financing under the optimal quantity of the retailer’s order quantity is greater than the individual financing,is equal to the optimal order quantity of the retailer without capital constraint under certain conditions,but did not reach the optimal capital constrained supply chain ordering.Third,based on the expansion of supply chain credit,the establishment of the bank’s initial margin decision model.The results show that:(1)before the advance payment,the bank can make the initial margin according to the credit degree of the supply chain to limit the amount of the loan and avoid the risk.(2)there is a negative correlation between the amount of initial margin and the credit level of the supply chain and the stability of the product value.In China,the loan interest rate is controlled by the state,and the bank can adjust the loan to avoid the risk through the margin decision,which has certain practical significance.Fourth,respectively,after the confirmation of the warehouse and the first post financing model,the main financing decisions,and before and after the main income of the financing,the results show that the ability to confirm the order of the coordination of the warehouse is higher than the first paragraph after the goods model.The in itial margin decision is also under the control of interest rate in our country.Fifth,through the analysis of this paper,some suggestions are put forward for the prepayment of the supply chain.