What are the benefits of supply chain finance?

Compared with traditional credit, supply chain finance is not only the marketing slogan of "personalized solution", but also different in thinking, realization mode and management method.

The traditional credit evaluation focuses on a single enterprise node, and the loan quality is basically determined by the operating conditions of the enterprise. The key to the financial risk of supply chain lies in the stability of the chain, and the evaluation of supply chain is not only a priority, but also more complicated.

For example, whether the relationship between supply chain nodes is "healthy" is beyond the operating data and is very important in supply chain finance. In other words, the contribution or destructiveness of a single node's credit to the supply chain is not as important as the business contact between nodes, because a good transaction model and strict monitoring process can digest the credit fluctuation of a single node.

In the way of realization, the traditional credit evaluation is the comprehensive credit of enterprises, which is relatively difficult to grasp, which is also the reason why asset-backed financing has become the mainstream.

However, supply chain finance emphasizes the certainty of transactions and the closure of funds, and requires funds to correspond strictly with transactions, transportation and commodity sales. The control degree of supply chain information flow determines the feasibility of supply chain financial scheme. Traditional credit depends on statements and cargo rights, and dynamic information should be added to supply chain finance, because the risk has moved up from a single node in the supply chain.