scholarly journals Research on the Influence Mechanism of Block Chain on the Credit of Transportation Capacity Supply Chain Finance

2021 ◽  
Vol 2021 ◽  
pp. 1-11
Author(s):  
Lili Xu ◽  
Yubin Yang ◽  
Xuejian Chu
Keyword(s):  
Supply Chain ◽  
Closed Loop ◽  
Credit Access ◽  
Credit Line ◽  
Influencing Mechanism ◽  
Supply Chain Finance ◽  
Transportation Finance ◽  
Supply Chain Financing ◽  
Transportation Capacity ◽  
Block Chain

This paper aims at the promotion of the application of inclusive financing into transportation capacity financing by combining transportation capacity supply chain with block chain technology as a brand-new financing topic. It focuses on the influencing mechanism by block chain on credit access, credit line, and credit supervision. From the perspective of “transportation” finance, the application of block chain in different scenarios is demonstrated after analyzing the attenuation process of credit transmission in the supply chain, the reviewing of two credit line evaluation methods of business self-compensation and credit guarantee, and the reviewing of regulatory requirements in transaction closed-loop, delivery closed-loop, and capital closed-loop; therefore the 3 major influencing mechanisms by block chain on the transportation capacity supply chain financing credit granting are discovered, indicating the effective improvement of financial institutions participation and better credit line for the financing of micro, medium, and small transportation enterprises (SMEs) by the application of block chain technology.

The credit analysis of transportation capacity supply chain finance based on core enterprise credit radiation

2021 ◽  
pp. 1-14
Author(s):  
Xu Lili ◽  
Liu Feng ◽  
Chu Xuejian
Keyword(s):  
Supply Chain ◽  
Financial Institutions ◽  
Profit Maximization ◽  
Credit Guarantee ◽  
The Core ◽  
Credit Line ◽  
Supply Chain Finance ◽  
Enterprise Credit ◽  
Transportation Capacity ◽  
Core Enterprise

This study examines the application of the business model of supply chain finance depending on the core enterprise, to the credit financing of transportation capacity enterprises. It studies the credit transmission characteristics regarding core enterprise credit radiation, presents the core enterprise credit segmentation and credit pricing, and transforms them into the calculation of credit guarantee and the default probability of core enterprises. Credit guarantee is regarded as a constraint of financial institutions’ credit decisions. Using probability density and logistic tools, we construct a profit maximization model for financial institutions and solve their optimal credit decision for a specific interest rate. Through numerical experiments, we verify the validity of the model and conclude that increasing the business volume between financing enterprises and core enterprises or reducing the probability of default can effectively improve financial institutions’ credit line.

Supply Chain Financing Model: Based on China's Agricultural Products Supply Chain

2013 ◽  
Vol 380-384 ◽  
pp. 4417-4421
Author(s):  
Ting Rui Wang ◽  
Qiang Gao Lan ◽  
Yong Ze Chu
Keyword(s):  
Supply Chain ◽  
Agricultural Products ◽  
Accounts Receivable ◽  
Agricultural Enterprises ◽  
Supply Chain Finance ◽  
Accounts Payable ◽  
Supply Chain Financing ◽  
Long Time ◽  
Financing Model ◽  
Inventory Financing

Difficulty in financing is a general problem faced by farmers and small and medium-sized agricultural enterprises for a long time because of the lack of guarantees in china. Supply Chain Finance (SCF) is generating much attention as a means of substituting for lower credit availability. For the purpose of promoting chinas rural financing products and service innovation by using SCF, this article studies agri-supply chain financing model and financing products. The result showed that agri-supply chain can extend credit to the upstream and downstream enterprise through order financing, accounts receivable financing, financing warehouse, accounts payable financing, prepaid accounts financing and inventory financing etc.

scholarly journals Supply chain finance

Bankarstvo ◽  
2020 ◽  
Vol 49 (4) ◽  
pp. 100-111
Author(s):  
Radmila Gaćeša
Keyword(s):  
Supply Chain ◽  
Financial Institutions ◽  
Technical Equipment ◽  
Financial Instruments ◽  
International Financial Institutions ◽  
Working Capital ◽  
Supply Chain Finance ◽  
Supply Channel ◽  
Supply Chain Financing ◽  
Trained Staff

Supply channel financing or reverse factoring can be defined as the use of financial instruments and technologies to optimize the management of working capital and liquidity, which are linked to the supply chain. This type of transaction includes the following participants: the supplier, the buyer and the factor as an intermediary. Given the available expertise, professionally trained staff, structured experience, technical equipment and some other functionalities, banks are, as factors, ideal participants in supply chain financing. The support provided by international financial institutions, some of which will be mentioned more specifically in the following text, can be a valuable opportunity to improve existing models, and to initiate new projects and install appropriate platforms, which would certainly benefit both clients and the banks themselves.

scholarly journals Improving Supply Chain Profit through Reverse Factoring: A New Multi-Suppliers Single-Vendor Joint Economic Lot Size Model

2020 ◽  
Vol 8 (2) ◽  
pp. 23
Author(s):  
Beatrice Marchi ◽  
Simone Zanoni ◽  
Mohamad Y. Jaber
Keyword(s):  
Supply Chain ◽  
Financial Institution ◽  
Theory And Practice ◽  
Lot Size ◽  
Accounts Receivable ◽  
Financial Decisions ◽  
Supply Chain Finance ◽  
Joint Economic Lot Size ◽  
Supply Chain Financing ◽  
Size Model

Supply chain finance has been gaining attention in theory and practice. A company’s financial position affects its performance and survivability in dynamic and volatile markets. Those that have weak financial performance are vulnerable when operating in environments that are uncertain and financially unstable. Companies adopt various solutions and techniques to manage, effectively and efficiently, the flow of money to and from its suppliers and buyers. Reverse factoring is an innovative technique in supply chain financing. This paper develops a joint economic lot size model where a vendor coordinates operational and financial decisions with its multiple suppliers through the establishment of a reverse factoring arrangement. The creditworthy vendor systematically informs a financial institution (e.g., bank) of payment obligations to selected suppliers, enabling the latter to borrow against the value of the relevant accounts receivable at low interest (borrowing) rates. The paper also presents a numerical example and a sensitivity analysis to illustrate the behavior of the model and to compare the economic and operational performance of a supply chain with and without a reverse factoring agreement. The results show that the establishment of a reverse factoring agreement within the supply chain improves the economic performance and impacts on the operational decisions.

Part III Innovation and Trade-Finance Challengers, 14 Something Old, Something New: Open Account, Prepayment, and Supply Chain Finance

2021 ◽  
Author(s):  
Hare Christopher
Keyword(s):  
International Trade ◽  
Supply Chain ◽  
Trade Finance ◽  
Letter Of Credit ◽  
Payment Mechanism ◽  
Supply Chain Finance ◽  
Supply Chain Financing ◽  
Technology Competition ◽  
Legal Difficulties ◽  
Over Time

Letters of credit have increasingly come under strain as a payment mechanism in international trade as a result of increased technology, competition, and regulation. At the same time, the letter of credit’s efficiency has reduced over time as a result of its processing costs and speed. The space created by the decline of the letter of credit has been filled by trade parties turning to open account and prepayment terms, whilst using Supply Chain Financing (‘SCF’) techniques to provide the requisite liquidity. The advantages of such payment terms are principally their speed, convenience and cost, all of which the letter of credit increasingly lacks. Accordingly, it is unlikely that this trend towards SCF techniques will abate any time soon. Nevertheless, there are still legal difficulties associated with such payment and liquidity-enhancing techniques, as well as uncertainty associated with the regulatory and accounting treatment of these devices. If open-account trading and SCF techniques are going to eclipse the letter of credit as a payment mechanism, these challenges will have to be addressed.

scholarly journals The impact of supply chain financing on SMEs performance in Global supply chain

2022 ◽  
Vol 10 (1) ◽  
pp. 255-270 ◽  
Author(s):  
Trong Lam Vu ◽  
Duy Nhien Nguyen ◽  
Tuan Anh Luong ◽  
Thi Thanh Xuan Nguyen ◽  
Thi Thai Thuy Nguyen ◽  
...  
Keyword(s):  
Supply Chain ◽  
Business Performance ◽  
Small And Medium Enterprises ◽  
Factors Affecting ◽  
Supply Chain Finance ◽  
Supply Chain Financing ◽  
Financing Performance ◽  
Medium Enterprises ◽  
The Impact ◽  
The Relationship

The purpose of the article is to evaluate the factors affecting supply chain finance and the influence of supply chain finance on supply chain financing performance and SMEs performance in Vietnam. The study was conducted on 856 small and medium enterprises in Vietnam for 3 consecutive months. The data is processed by Smart PLS 3.3.6 software, the results show that credit quality, supply chain integration, information sharing, and information technology all have a statistically significant impact on supply chain finance. Besides, supply chain finance has a statistically significant impact on supply chain financing performance and SMEs performance. Finally, the innovation capability and the market response capability act as full mediators in the relationship between supply chain finance and supply chain financing performance. Based on the research results, we propose solutions and recommendations to help small and medium enterprises better access capital and improve business performance.

Supply Chain Financing: Moving beyond Source, Make, and Deliver

2020 ◽  
Author(s):  
Dale S. Rogers ◽  
Rudolf Leuschner ◽  
Thomas Y. Choi
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Product Information ◽  
Chain Structure ◽  
Chain Management ◽  
Financial Firms ◽  
Corporate Executives ◽  
Supply Chain Finance ◽  
Supply Chain Financing ◽  
Supply Chain Structure

Supply chain management has been focused on how to source, make, and deliver products throughout the world. This chapter proposes the addition of one more function to that list—to fund. As a result of technology supporting financial firms, such as banks and financial technology firms, the supply chain has become the least expensive source of capital available to a firm. Corporate executives increasingly rely on the supply chain as a source of capital. A typical supply chain has three major flows: product, information, and finances. These three flows can vary in importance depending on the environment and supply chain structure. Most of the supply chain management literature focuses on products and information flows and pays minimal attention to the financial side of supply chain management. This chapter views supply chain financing as a bigger concept than the concept commonly known as supply chain finance. Supply chain financing focuses on how to use the supply chain to fund the organization and how to use the organization to fund the supply chain. The goal of supply chain financing is to ensure liquidity within supply chains by helping the buyer and supplier organizations conserve their own capital by injecting liquidity from sources that previously were not known or available.

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