Overview of supply chain finance model

Supply chain finance mode refers to a business model that banks or other financial institutions are not limited to a certain enterprise, but arrange financing for all members of the industrial supply chain as a whole, and provide credit through the credit binding between small and medium-sized enterprises and core enterprises.

By controlling information flow, logistics and capital flow, supply chain starts with purchasing raw materials, then manufactures intermediate products and final products, and finally delivers products to consumers through the network, connecting suppliers, manufacturers, distributors, retailers and consumers into a complete functional network chain structure. It is not only the logistics chain, information chain and capital chain connecting suppliers and consumers, but also the value-added chain. The materials in the supply chain increase their value due to the process of processing, packaging and transportation, which brings benefits to related enterprises.