What is supply chain financing? What is the difference between it and ordinary financing, and what are the advantages of supply chain financing?

Supply chain financing is a financing model that takes the core enterprises in the supply chain and their related upstream and downstream supporting enterprises as a whole, and develops an overall financial solution based on the right of goods and cash flow control according to the trading relationship and industry characteristics of the enterprises in the supply chain.

The difference between supply chain financing and traditional financing business:

Differences in essence. The essence of supply chain financing is a change in the credit culture of banks or financial institutions, the essence of the traditional financing business from a certain channel to the company's investors and creditors to raise funds.

The advantages of supply chain financing:

1, not only can small and medium-sized enterprises can benefit, the core enterprises in the chain can also get business and capital management support, thus enhancing the overall quality of the supply chain and the degree of solidity, and finally the formation of the bank and the members of the supply chain of the multi- **** win situation.

2, supply chain financing is not only conducive to solving the problem of financing difficulties of supporting enterprises, but also promotes the effective interaction between finance and industry, so that the bank or financial institutions to jump out of the limitations of a single enterprise, from the focus on static to the dynamic tracking of business operations, and fundamentally change the bank or financial institution's observation horizons, thinking vein, credit culture and development strategy.

3. For core enterprises, they can provide value-added services to suppliers with the help of banks' supply chain financing, which makes the flow of funds more regular and reduces the payment pressure. At the same time, it also expands its own production and sales, and it can compress its own financing and increase the efficiency of capital management.

Principle of supply chain financing:

1. Firstly, rationalize the information flow, capital flow and logistics of the relevant enterprises in the supply chain;

2. Banks and financial institutions integrate the information between the capital flow of the banks or financial institutions and the logistics and information flow of the enterprises based on the stable and supervisory receivable and payable information and the cash flow;

3. Then the banks or financial institutions to provide financing, settlement services and other integrated business services;

4. The unified management and coordination of logistics, capital flow and information flow enables the participants, including the enterprises in the supply chain as well as the banks or financial institutions, to get their own "cheese", which further improves the efficiency of supply chain management. Management efficiency. At the same time, warehousing and logistics companies can help financial institutions to reduce credit risk through the direct control of materials.

Expanded:

News about supply chain financing:

The results of the CITE 2019 blockchain innovation results were announced at the 7th China Electronic Information Expo (CITE 2019), and Tencent Cloud blockchain supply chain finance (warehouse receipt pledge) solution was awarded " CITE 2019 Blockchain Excellent Solution".

The solution fully integrates Tencent Cloud blockchain technology with warehouse receipt pledge financing scenarios, and combines the technical capabilities of intelligent warehousing, intelligent Internet of Things, artificial intelligence, and big data analysis to effectively solve the problems of identity trust, risk control, and inefficiency in the traditional warehouse receipt pledge financing process.

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