Optimization Research On Loan-to-value Ratios Of Inventory Financing Under Uncertain Price And Inventory Deterioration

In recent years,the emergence of small and medium-sized enterprises in China has provided an important guarantee for the improvement of market vitality,the optimization of national economic structure and the steady and healthy development of the economy.However,small and medium-sized enterprises are generally weak and easily affected by market competition.Their short life cycle makes them face many obstacles in financing and lending to financial institutions,which to some extent restricts their operation and expansion of production.However,the inventory pledge financing business can effectively utilize the raw materials,work-in-process and other movable resources of small and medium-sized enterprises,and make up for the capital gap of small and medium-sized enterprises with production and operation difficulties,so it is widely carried out.With the development of inventory pledge financing business,financial institutions are faced with increasing loan risks,such as the risk of price and demand fluctuation of collateral,and the risk of loss in the process of collateral supervision.Financial institutions can avoid and reduce loan risks by setting reasonable guarantee rate,and at the same time obtain the income from participating in financing loans.Therefore,from the perspective of financial institutions,it is of great significance and value to study the optimization of the pledge rate of inventory pledge financing.This paper discusses the optimization of the pledge rate of financial institutions considering the price fluctuation and the loss of pledges when carrying out inventory financing business.Firstly,considering the actual situation of pledge loss,the paper constructs the pledge loss function that financial institutions adopt to stimulate third-party logistics enterprises.Secondly,considering the pledge pledge period is longer,in the pledge during a certain loss,and the market price of the loan period at the end of the pledge and affected by market fluctuations of the actual demand,these factors have been analyzed for different loan-to-value ratio interval on the influence of the market value of the pledge,set up under the expected utility maximization of loan-to-value ratio optimization model for inventory impawn financing.Finally,the optimal incentive coefficient and guarantee rate are obtained by using analytic piecewise function.In order to verify the applicability and validity of the model and the method,this paper conducts an example analysis of the model.Considering different the pledge initial market prices,financing enterprises initial loss rate and the loss probability of default,the pledge to improve factors have important influences profit expectations of financial institutions,and thus affect its loan-to-value ratio decision,in this paper,the pledge loan initial market price,the financing enterprise initial loss rate and the loss probability of default,the pledge to improve factor sensitivity analysis.The results show that:financial institutions should pay close attention to the change of the market price of pledges at the beginning of the loan.Financial institutions tend to choose products with low initial loss rate as collateral,or choose products with effective control of loss rate through incentives as collateral.Financial institutions' incentive to third-party logistics enterprises is not unlimited.When the improvement factor of consumption is particularly large,financial institutions only need less incentive investment to effectively reduce the consumption of pledges and optimize the pledge rate.It provides reference for financial institutions to make decision when carrying out inventory pledge financing business.