Research On Optimization Of Loan-to Value Ratios Considering Enterprise Credit And Supervision Level

Currently,the rapid development of the domestic logistics industry intensifies competition in the logistics industry and breaks the traditional pattern of logistics industry.,The combination of logistics and finance becomes a new direction of development,and now theoretical and applied research on logistics and finance is a hot topic.In research regarding-to logistics finance,inventory financing gains a great deal of development because of its good coordination of interests of the banks,logistics enterprises and SMEs,and attracts more and more attention.Inventory financing transforms part of SMEs' credit risk into collaterals' risk in the supply chain.In order to reduce collaterals' risk effectively,banks and other financial institutions need to determine the reasonable loan-to-value ratio at the beginning of the pledging cycle.Thus,the research on the optimization of loan-to-value ratio is the frontier research direction of logistics finance in recent years,which has both important theoretical significance and broad application value.With regard to the problems of loan-to-value ratio decisions made by banks on inventory financing,this paper discusses the optimization of loan-to-value ratio considering financing enterprise's credit level and 3PL's supervision level.Firstly,a demand breakthrough point is identified by analyzing whether SMEs choose to pay back their loans or not.Next,based on the demand breakthrough point,bank's expected profit model in inventory financing is established.Finally,this paper illustrates the solution methods and steps to this model.With converse inductive method,optimal loan-to-value ratio is derived on the condition that the bank can achieve its maximum expected profits.Accordingly,bank's expected profit,financing enterprise optimal pledging quantity and expected profit can be calculated.In order to verify the feasibility and practicability of this model and its algorithm,the model is applied to the numerical example.Considering the different credit level in different financing enterprises,and different supervision level provided by 3PL,this paper performs the sensitivity analysis.It verifies that the higher the financing enterprise credit level and logistics supervision level is,the higher bank optimal loan-to-value,bank expected profit and financing enterprise expected profit are,and the smaller financing enterprise optimal pledging quantity is.Also,the higher level of the financing enterprise credit and logistics supervision,the quicker increase of bank's optimal loan-to-value ratio and expected profit and the quicker decrease of financing enterprise optimal pledging quantity.