Research On Supply Chain Financial Risk Management Of Iron And Steel Trade Enterprises

Supply chain finance changed the way that financial institutions use individual companies as their financing targets.Instead,they look at the entire supply chain and use the core companies in the supply chain as a hub to provide financing for middle and small-sized enterprises in the supply chain in order to achieve supply.The chain trades and transfers the individual company's financial risk to the entire supply chain,minimizing risks.The essence of supply chain finance is a kind of self-repaying trade financing based on real trade items,combining business flow,logistics,information flow and capital flow.The core company in the supply chain is the key.Companies that have good credit and sufficient cash flow and have a certain status in the industry generally have higher credit ratings in financial institutions.Middle and small-sized enterprises can rely on the industry status of core enterprises through trade,thereby raising their financing credit levels in supply chain finance and alleviating financing difficulties.Traditional bank financing is generally based on the simple credit rating of business personnel,subjectively assess the risk of loan companies and credit enhancement measures,and lacks a precise and quantitative measure of risk,resulting in many bad loans.The collaterals in supply chain finance are generally prepayments,accounts receivable,and inventory generated by financing companies and core companies due to trade.Therefore,financial institutions providing loans are more concerned with the real transactions between the upstream and downstream companies in the entire supply chain,the creditworthiness of core companies,and the future cash flow status of middle and small-sized enterprises transactions.Currently,institutions that can provide supply chain financial services are not limited to banks and other financial institutions.At present,the state has also issued relevant supply chain companies(such as factoring companies,financial leasing companies,internet finance platforms,industry leading companies,logistics companies,etc.).However,with the extensive use of supply chain finance and defaulting projects in financial institutions,risk assessment and measurement have become the focus of financial institutions and supply chain companies to conduct business.How to effectively control risks directly affects the future of supply chain financial services.This thesis studies the supply chain finance of steel trading companies,because the steel industry is the pillar industry of China's economy,and the steel trade supply chain is a concretely better foundation and a complete industrial chain in China.Iron and steel trading companies also have the characteristics of large capital requirements,rapid capital turnover,and vulnerability to macroeconornic impacts.They generally have strong financing needs and are the most suitable industries for the development of supply chain finance.Steel trading companies are not only reservoirs for upstream large-scale steel enterprises,but also serve as bridges connecting downstream industries and serve as links between upstream and downstream companies.On the basis of previous research,combining the problems existing in the realities of steel trade and the combination of qualitative and quantitative perspectives,I constructed a risk assessment model suitable for steel trade enterprises through factor analysis and logistic model.Through the calculation of the model,the decision-making result of whether to carry out financing services is changed,the method of subjective evaluation by industry experts in the past is changed,and empirical analysis is conducted.Through research,it can be concluded that supply chain finance can improve the credit rating of middle and small-sized enterprises in obtaining financial support from financial institutions or supply chain companies,and at the same time reduce the financing threshold for middle and small-sized enterprises.Faced with the current imperfect supply chain finance risk control mechanism,the introduction of blockchain theory and the blockchain can effectively control the steel chain supply chain financial risks.Finally,it proposes the financial risk management of the supply chain of steel trade enterprises,and analyzes it from the three aspects of the macro environment,financial institutions such as banks and financing companies themselves.I hope that my research can provide some practical theories for the supply chain finance risk management of steel trade enterprises.