Who bears the interest on supply chain finance loans

Three Financing Models of Supply Chain Finance

The three traditional manifestations of supply chain finance are accounts receivable financing, inventory financing, and prepayment financing.2022 In domestic practice, commercial banks or supply chain enterprises are the main participants in supply chain finance business.As the research object of this series of topics is supply chain enterprises. So we mainly take supply chain enterprises as service providers when introducing supply chain finance models.

Banks around the core enterprise, management of upstream and downstream small and medium-sized enterprises of the capital flow, logistics and information flow, and a single enterprise's uncontrollable wind source of rotten risk into the supply chain enterprises as a whole of the controllable risk, through the three-dimensional access to all kinds of information, will be the risk of controlling the minimum of financial services.

Benefits

The reason for the rapid development of supply chain finance is that it can effectively solve the financing problems of small and medium-sized enterprises (SMEs) and extend the depth of banking services, which is a win-win situation.

First, the new channel of enterprise financing

Supply chain finance for small and medium-sized enterprises to finance the concept of technical bottlenecks to provide a solution to the small and medium-sized enterprises credit market is no longer unattainable.

Supply chain finance has begun to enter the line of sight of many large corporate finance executives. For them, supply chain finance, as a new channel of financing, not only helps to make up for the traditional working capital loan amount compressed by banks, but also introduces financing facilities through upstream and downstream enterprises Song Split Sail, and the level of their own liquidity needs continues to decline.

Secondly, the bank open source new access

Supply chain finance provides a new channel to cut wild hail into and stabilize high-end customers, through the supply chain system for members of the package solution, the core enterprise is "tied" in the bank to provide services.

The main reasons why supply chain finance is so attractive to international banks are that it is more lucrative than traditional business and offers more valuable opportunities to strengthen customer relationships. In the context of the financial crisis, these reasons seem even more compelling. The potential market for supply chain finance is huge, with UPS estimating that the stock of accounts receivable in the global market is around US$1,300 billion, and the market potential for accounts payable discounting and asset-backed lending (including inventory financing) amounting to US$100 billion and US$340 billion respectively. By 2022, by 2008, 46 of the world's 50 largest banks were offering supply chain finance services to companies, and the remaining four were actively planning to start the business.

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What is the meaning of supply chain factoring financing application for lending

Hello, the answer is as follows, I hope it can help you:

In layman's terms, it is a way of financing to the upstream and downstream enterprises, which is guaranteed by the performance credit of the core enterprises (listed companies or large enterprises).

To explain in layman's terms, it is a kind of financing to the upstream and downstream enterprises with the performance credit of the core enterprise (listed company or large enterprise) as the guarantee to provide a kind of financing to the upstream and downstream enterprises, which is actually the process of realizing the receivables of the core enterprise, with the same principle as the commercial paper financing, and the difference with the bank paper financing is that the credit of the core enterprise rather than the bank's credit is attached behind the supply chain financing.

In fact, the supply chain financing is a big concept, specifically can include a variety of different ways of financing, for example, if the upstream enterprise belongs to the strong capital company, and the core enterprise signed a long-term supply contract, at the same time their accounts receivable is obviously too much, the upstream enterprise can contact the bank and the core enterprise tripartite signed the promissory note warehouse agreement, usually between these three Will join a warehousing party, the specific operation is:

1, the bank and the upstream enterprise signed a credit agreement, agreed to the upstream enterprise to the future supply of goods as a collateral, to the core business of the future goods as a source of repayment, by the bank to provide to the upstream enterprise guaranteed loan.

2, the bank and the upstream enterprise, the core enterprise, warehousing enterprise signed a promissory warehouse agreement, agreed that the upstream enterprise future performance of the goods by the warehousing side of the storage party, at the same time, the core enterprise in accordance with the contract agreed to monthly pick up the goods from the warehousing side of the goods, the goods to the bank to pay the payment of the designated account, the bank regularly set off the goods against the upstream enterprise's loan until the contract is fully performed, the loan is fully returned.

3, of course, because the upstream enterprise belongs to the financing party, so he has to the core enterprise termination of the performance of the repayment obligation, so there is a touting repayment agreement, therefore, generally the upstream enterprise will give the core enterprise discounts to ensure that the core enterprise to continue to perform.

There are also many upstream suppliers who have receivables without collateral, and the financing is based on the performance credit of the core enterprise, the specific way with

Who are the main lenders of supply chain finance lenders

Hello, the main lenders of supply chain finance loans are banks, trust companies, investment institutions and other financial institutions. Banks are the most common supply chain finance lenders and they can provide short-term loans, medium-term loans and long-term loans to meet the business needs of enterprises. Trust companies are also a type of supply chain finance lender that can provide short-term, medium-term and long-term loans to meet the business needs of enterprises. Investment institutions are also a type of supply chain finance lender that can provide short-term loans, medium-term loans and long-term loans to meet the business needs of enterprises. In addition, other financial institutions can also provide supply chain finance loans, such as corporations, commercial factoring companies, trade finance companies, and so on. These financial institutions can provide suitable loan programs according to the financial situation and loan needs of enterprises to help them achieve their business goals.

Supply Chain Finance Financing Model and Optimization Countermeasures Analysis

Supply Chain Finance Financing Model and Optimization Countermeasures Analysis

Supply Chain Finance is an innovation on the basis of logistics finance, which extends the financing from the stage of merchandising to the stage of purchasing and production on the basis of logistics finance. Here is my share of supply chain finance financing model and optimization countermeasures analysis, welcome to read and browse.

First, the emergence and characteristics of supply chain finance

In the study of SMEs financing problems, we tend to pay most attention to the study of financing difficulties in the "surface" reasons, for example, the high threshold of the bank; the enterprise does not have collateralized items; the enterprise non-systematic risk is high; the enterprise does not have complete Financial statements and so on, these are the reasons why SMEs are excluded from the credit market. However, we tend to ignore the substantive reasons, that is, after the enterprise to the bank financing application, the bank is always in accordance with a standard, a model to the enterprise financing assessment, to see whether it has the ability to repay.

Some SMEs have the ability to repay, but this ability to repay is often based on the real transaction background, not or not expressed by the book financial information. In particular, when these enterprises do not have valid, collateralized fixed-value assets, banks refuse to finance them because they cannot effectively screen the information. Based on the objective requirement of solving this contradiction between enterprises and banks, supply chain finance came into being.

Supply chain finance is an innovation on the basis of logistics finance, which extends financing from the stage of commodity sales to the stage of procurement and production on the basis of logistics finance. Therefore, the supply chain financing model helps to alleviate, to a certain extent, the financing difficulties of SMEs dealing with core enterprises.

Nowadays, large core enterprises use "global sourcing" and "business outsourcing" to reduce costs, and large enterprises attract a group of small and medium-sized enterprises (SMEs) whose main business is material procurement and product sales through their good brand image and financial management effectiveness, forming a relatively safe and secure supply chain. The company has been able to attract a number of small and medium-sized enterprises through its good brand image and financial management effectiveness, forming a relatively safe and stable business ecosystem.

These small and medium-sized enterprises, as the upstream and downstream of the core enterprise, financing needs mainly come from the core enterprise to transfer the liquidity pressure: the core enterprise uses its strong position to require raw material suppliers to pay for goods before payment; for the downstream distributors, they also require payment for goods before payment. The more competitive and larger the core enterprise, the greater the pressure on the upstream and downstream, thus creating a huge demand for financing for these SMEs. In addition, large enterprises out of the requirements of zero inventory, a considerable portion of the management costs and capital costs transferred to the upstream and downstream enterprises, resulting in upstream and downstream enterprises capital constraints, turnover difficulties, which also creates the need for enterprise financing.

From this, we can see that to solve the problem of financing difficulties of these enterprises can not just stay in a single subject to find the reasons, should be from the whole supply chain to find a new way of financing SMEs. In 2003, the Shenzhen Development Bank took the lead in the industry to put forward the "1N" financing model, "1N" in the 1 refers to the core enterprises in the supply chain, are generally large high-end enterprises, constituting the bank credit risk management of the "safe harbor". The "1N" in 1 refers to the core enterprise in the supply chain, which is generally a large high-end enterprise, constituting the "safe harbor" for the bank's credit risk management; N refers to the supply chain member enterprises upstream and downstream of the core enterprise, i.e., the use of supply chain industry clusters in the concomitant network relationship, the credit of the core enterprise is introduced into the upstream and downstream of the credit services, and the wholesale marketing for supply chain member enterprises.

In 2005, Shenzhen Development Bank put forward the brand product of "supply chain finance", the so-called "supply chain finance" refers to the use of self-reimbursable trade finance credit model based on the analysis of the transaction structure within the supply chain.

In layman's terms, it means that the bank can help the bank to control the direction of the loans to SMEs, ensure the safety of the loan funds, and effectively control the bank's lending risks by relying on the creditworthiness of the core enterprises in the supply chain with which SMEs have a cooperative relationship, or by using the business contract between the two as a guarantee, and at the same time relying on the participation of the third-party logistics enterprises to **** the same share in the lending risks. Thus, in solving the financing problems of small and medium-sized enterprises at the same time, through such financial support, the bank has strengthened its cooperative relationship with the enterprise, has the corresponding stable business customers, business risk is reduced, the operating efficiency has been improved.

According to the disclosure of Shenzhen Development Bank, as of the end of December 2007, Shenzhen Development stock of trade finance customers nearly 3,000, customer growth year-on-year amounted to 52.2%; trade finance on and off-balance sheet credit balance of nearly 80 billion yuan, a year-on-year increase of 38.92%, accounting for the proportion of the whole bank's corporate business credit increased by 4.66 percentage points compared with the beginning of the year; trade finance delinquency rate is very well controlled in the below 1%, with no actual loss so far. As of the end of September 2008, the number of trade finance customers and the balance of on- and off-balance sheet credits of the Bank as a whole rose by more than 30% compared with the beginning of the year.

Supply chain finance actually integrates all the resources in the "production-supply-marketing" chain, and provides comprehensive financial services to individual enterprises in the supply chain as well as multiple enterprises in the upstream and downstream chains, in order to promote the "production-supply-marketing" of the core enterprises in the supply chain and their upstream and downstream supporting enterprises, as well as the "production-supply-marketing" of the core enterprises in the supply chain. The core enterprise of the supply chain and its upstream and downstream supporting enterprises can provide comprehensive financial services to individual enterprises in the supply chain up to multiple enterprises in the upstream and downstream chains, so as to promote the core enterprise of the supply chain and its upstream and downstream supporting enterprises in the "production-supply-marketing" chain and smooth flow.

Compared with traditional bank financing, supply chain finance has obvious characteristics: first, the credit access assessment of supply chain members is not isolated. Banks should not only assess the financial strength and industry position of the core enterprise, but also investigate whether the link between the various enterprises in the entire supply chain is close enough. The evaluation of access to financing for a member focuses on its importance to the entire supply chain and its transaction history with the core enterprise. Secondly, the financing of members is strictly limited to the trade background between them and the core enterprise, and the diversion of funds is strictly controlled. In addition, supply chain financing also emphasizes the self-repayment of the credit repayment source, that is, the enterprise through the bank's financial support to make trade, the sales revenue of the transaction can be for their own repayment of bank loans.

This financing model allows core enterprises to further reduce costs, improve efficiency and enhance market competitiveness; it can solve the problems of upstream and downstream small and medium-sized enterprises to improve their negotiating position; it allows third-party logistics enterprises to strive for customer resources, expand the scope of services, and ultimately improve the quality of service and efficiency of the logistics enterprises, and, at the same time, allows commercial banks to expand the source of intermediary business income, stable Settlement deposits. It can be seen that it allows all four parties to maximize the benefits and form a credibility chain. We call this phenomenon of SMEs utilizing the credit radiation and credit enhancement of the credit chain derived from the supply chain to obtain financing facilities and reduce financing costs the "halo effect".

Second, the supply chain finance business model

The traditional financing methods less use of liquid assets as credit support, but from the perspective of the supply chain enterprise clusters, the transaction process is the integration of information flow, logistics and capital flow, and this integration is relatively closed, which provides the conditions for the bank to monitor. The enterprise's financing needs when the capital gap occurs in three stages: the procurement stage, the production stage and the sales stage, and this corresponds to the enterprise liquidity occupation of the three subjects: prepayment, inventory and accounts receivable, the use of these three parts of the asset as a credit support for enterprise loans, can be formed in the prepayment financing, inventory financing, and accounts receivable financing of the three bases of the supply chain financing solutions.

(I) Advance payment financing

As the financing enterprise and the upstream strong enterprise have long-term good cooperation relationship, the financing enterprise, the upstream strong enterprise and the bank can sign an agreement, set up the financing enterprise as the commercial acceptance discounting agent agent agent of the upstream strong enterprise endorsement in advance, and then the financing enterprise applies for the discounting with the commercial acceptance and the letter of guarantee to the bank, and after the discounting, the After discounting, the bank will transfer the discounted amount (i.e. the amount of raw materials purchased by the financing enterprise from the upstream strong enterprise) directly to the designated account of the upstream strong enterprise, and the upstream strong enterprise will receive the payment and shipment to solve the problem of raw material supply. This is the prepayment financing model.

Prepayment financing can be understood as "future inventory financing", because from the point of view of risk control, prepayment financing is based on the security of the prepayment of the customer's right of delivery to the supplier, or the realization of the right of delivery through the shipment, transportation and other aspects of the formation of the inventory in transit and inventory inventory.

(II) Accounts receivable financing

Accounts receivable financing mode based on supply chain finance refers to the way of financing for small and medium-sized enterprises (SMEs) that are in the upstream of the supply chain by using SMEs' accounts receivable documents and vouchers of the core large enterprises in the supply chain as the pledged collateral and applying for short-term loans with a maturity of not more than the age of the accounts receivable from the commercial banks, and by the banks for the SMEs in the upstream of the supply chain. Simply put, it is the outstanding accounts receivable to financial institutions for financing behavior.

(C) inventory financing

When the upstream strong enterprise is only willing to accept the bank note or payment for goods is not willing to let the downstream financing enterprise agent discounting, the bank, the upstream strong enterprise as well as the financing enterprise of the three parties can enter into an agreement, the first note after the goods. The bank will pay the raw material payment directly to the upstream strong enterprise, the strong enterprise receives the payment and ships the goods to the bank's designated location, which is supervised by the bank's designated logistics supervision, forming the inventory pledge financing. When the financing enterprise receives the order, it pays the money to the bank to redeem the goods, and the bank instructs the warehousing and supervisory organization to release the goods to the financing enterprise, thus completing the round of production.

For accounts receivable and inventory financing, the repayment capacity analysis focuses on the borrower's cash flow from accounts receivable and inventory rather than analyzing the cash flow generated from operations. Banks focus more on the quality and value of accounts receivable and inventory, and the ability to liquidate collateral, rather than on income and balance sheet information.

Third, the optimization of supply chain financing model

In practice, supply chain finance, although to a large extent, eliminates the `credit risk' of both the granting and receiving sides: the core enterprise of the supply chain member enterprises often establish a screening mechanism, supply chain members are also the winner under the evaluation of the operational, financial and credit levels. Because core enterprises have strict management of their supply chain members, both parties will maintain a relatively stable cooperative relationship after entering the supply chain. The qualification itself is a valuable intangible asset for SMEs entering the supply chain system of large enterprises.

As a result, companies will maintain this relationship to avoid things like loan defaults affecting their position in the supply chain. This reputation reduces the moral hazard in SMEs being trusted. However, this inherently high-risk problem cannot be avoided because SMEs in supply chain financing have a weak ability to resist market risks themselves. Therefore, only through risk management innovation technology, to focus on solving this risk, optimize the supply chain financing model, to achieve the security and efficiency of the supply chain financial chain.

There are credit risk, technical risk and legal risk in the supply chain financing model, but the latter two are exogenous risks, which are more difficult to control, so this paper mainly analyzes the credit risk, i.e. endogenous risk.

In view of the above problems, and drawing on information management technology, we can build a "supply chain information **** enjoyment platform" to achieve the optimization of the supply chain financing model.

The purpose of establishing this "supply chain comprehensive information **** enjoyment platform" is mainly to solve the problem of information asymmetry, which is the main reason for credit risk. On this platform, all the enterprises in the supply chain (if it wants to finance) can register on it, and there is an independent page, which records the specifics of each transaction of the enterprise, and each transaction needs its upstream and downstream core enterprises to click to confirm, so as to ensure the authenticity of each transaction. For example, for enterprise A (supplier) and enterprise B (core enterprise), after enterprise A supplies to enterprise B, it records the details of this transaction on its own webpage, and then B carries out the click to confirm. Since this involves enterprise B's own interests, it is impossible and unnecessary for enterprise B to help enterprise A to make a false statement. This will allow the bank to evaluate and finance Enterprise A after checking all of its true records of the transaction. Due to the private nature of enterprise information, important information can only be seen by other enterprises and banks that are in this supply chain and have close contact with the enterprise.

The content of this "supply chain integrated information*** enjoyment platform" can include the following information:

Transaction information: the time, product, quantity, amount of each transaction, and the transaction of the upstream (downstream) enterprises.

Financial information: the enterprise's three tables, balance sheet, income statement and cash flow statement, allows the bank to analyze the enterprise's solvency, cash flow in and out of the situation, and then determine the business situation.

Tax information: The tax amount is the best indicator of sales, the higher the tax amount, the more optimistic the sales of the enterprise.

In addition to the above information, the company can add relevant information that is conducive to financing, such as dividends, long-term development strategy, and so on.

The establishment of this information platform has several benefits: First, reduce costs and improve efficiency, the bank has to investigate the background of each business transaction to spend a lot of manpower and costs, the use of information platforms can greatly reduce the cost, but also because the supply chain financing itself is a self-paying trade finance, follow the "borrow a single, complete a single, pay back a" principle, every time the supply chain financing itself is self-paying trade finance, follow the "borrow a single, complete a single, pay back a The principle of "borrow one, finish one, pay one back", each transaction is recorded separately, the confirmation time is shortened, the efficiency is improved, so that the whole supply chain is more competitive.

Secondly, on this platform, you can record your own inventory, production, so that all the nodes of the enterprise can quickly grasp the upstream and downstream nodes of the inventory status, production plans and market demand forecasts and other information, so as to timely and accurately adjust their own business plans, but also to make the credibility of the chain of enterprises in the **** to enjoy at the same time, can be linked with the chain of enterprises outside each other, so that the marginal credibility of the increasing Thus forming the "multiplier effect" of credibility. Thirdly, after the bank sees the information of the enterprise in need of financing, if it feels that the enterprise is operating well, has high credibility, and has a continuous and real trade background with the core enterprise, it can carry out other businesses, such as factoring, etc., and give more ways to finance the SMEs.

In addition, in order to incentivize enterprises to improve their creditworthiness, a "positive incentive" mechanism can be set up, whereby each time an enterprise pays back its loan on time, it can be given certain incentives, such as a bonus point system, whereby the higher the enterprise's score, the faster the enterprise pays back its loan, the better its creditworthiness, and the more favourable the bank can be in the future lending process. For example, lower prices (i.e. interest rates).

It can be seen that the establishment of an enterprise, banks, logistics companies between **** enjoy the information platform, help to reduce the risk of supply chain financing, can improve the availability of loans to small and medium-sized enterprises, reduce the lack of financing funds because of the lack of good opportunities for the loss of the development of the possibility of the possibility of development

What is the supply chain financial supply chain finance three financing Mode

Supply chain finance is a specialized field of commercial bank credit business (bank level) and a financing channel for enterprises, especially small and medium-sized enterprises (enterprise level).

It refers to the provision of financing and other settlement and financial services by banks to their customers (core enterprises), and at the same time the provision of facilities for the timely collection and delivery of loans to the suppliers of these customers, or the provision of prepayment and inventory financing services to their distributors. (Simply put, it is a financing model in which banks link core enterprises and upstream and downstream enterprises together to provide flexible financial products and services.)

The financing modes of supply chain finance are as follows:

1, Ali mode;

2, industry information portal mode;

3, software company mode;

4, logistics company mode;

5, traditional leading enterprises mode.

Extended information:

Benefits of Supply Chain Finance

1, a new channel of corporate finance

Supply Chain Finance for the The concept of SME financing and technical bottlenecks to provide a solution to the small and medium-sized enterprise credit market is no longer unattainable.

Supply chain finance has begun to enter the sights of many large-scale corporate finance executives. For them, supply chain finance, as a new channel of financing, not only helps to make up for the traditional working capital loan amount compressed by banks, but also introduces financing facilities through upstream and downstream enterprises, and the level of their own liquidity needs continues to decline.

Due to the intensification of industrial chain competition and the strength of the core enterprises, credit sales occupy a considerable proportion in supply chain settlement. Enterprises selling on credit has become the most widespread payment terms of payment. The existence of a large number of accounts receivable due to credit sales has, on the one hand, forced SMEs to face the risk of insufficient liquidity directly, and the enterprise capital chain has been obviously strained;

On the other hand, the issue of information management, risk management, and utilization of accounts receivable as a potential capital flow of the enterprise has also become increasingly important to the enterprise.

In the new situation, the revitalization of enterprise accounts receivable has become an important path to solve the financing problems of SMEs in the supply chain. Some commercial banks have made fruitful innovations in this field, and China Merchants Bank's latest on-line accounts receivable and payable management system and on-line domestic factoring system is an innovation that has attracted much attention.

According to the product manager of the Cash Management Department of China Merchants Bank, the system can provide comprehensive, transparent and fast electronic accounts receivable management services and domestic factoring solutions for suppliers and buyers in the supply chain transactions, greatly simplifying the complex operational processes faced by the traditional factoring business operations, and in particular, helping to optimize the buyers and sellers are located in two different places when the transfer of claims to confirm the problem, helping enterprises to quickly obtain the much-needed funds. In particular, it helps optimize the confirmation of debt assignment when the buyer and seller are separated from each other, and helps enterprises quickly obtain the urgently needed funds.

2, the bank open source new channel

Supply chain finance provides a new channel to enter and stabilize high-end customers, through a package of solutions for members of the supply chain system, the core enterprise is "tied" to the bank providing services.

The main reasons why supply chain finance is so attractive to international banks are that it is more lucrative than traditional business and offers more valuable opportunities to strengthen customer relationships. In the context of the financial crisis, these reasons seem even more compelling.

The potential market for supply chain finance is huge, with UPS estimating that the global market for accounts receivable is about $1.3 trillion, and the market potential for accounts payable discounting and asset-backed lending (including inventory financing) at $100 billion and $340 billion, respectively.

China Merchants Bank said that under the service and risk consideration model of supply chain finance, the assessment of overall trade transactions will bring more small and medium-sized enterprises (SMEs) into the scope of the bank's services as the bank pays more attention to the trade risk of the whole supply chain.

Even if an individual enterprise fails to meet some of the bank's risk-control standards, as long as the business dealings between this enterprise and the core enterprise are stable, the bank can, instead of just conducting an independent risk assessment of the enterprise's financial situation, extend credit for this business and facilitate the realization of the entire transaction.

3, economic and social benefits

Also important is that the economic and social benefits of supply chain finance is very prominent, with the "group-buying" type of development mode and risk control means of innovation, SMEs financing the benefit-cost ratio can be improved, and show obvious economies of scale.

According to statistics, through the supply chain financial solutions in conjunction with the improvement of collection methods, inventory inventory inventory and deferred payment, the largest 1,000 U.S. enterprises in 2005 to reduce the liquidity needs of 72 billion U.S. dollars.

Similarly, Europe's largest 1,000 publicly traded companies revitalized 46 billion euros in 2007 from three accounts: accounts receivable, accounts payable and inventory.

4, supply chain finance to realize the multi-stream

Supply chain finance is a good realization of the "logistics", "business flow", "capital flow", "information flow" and other multi-stream integration.