With the perspective of small and medium-sized enterprises in China, it has trouble getting financing. Based on cash - cash flow sensitivity model, this paper figures out the existence of financial constraints on SMEs in software industry and supply chain finance’s effect on it. The cash flow sensitivity of cash and supply chain finance’s effectiveness are evaluated using a large sample of listed companies on the SME boardfrom2008 to 2018. Through empirical analysis and robustness checks, it is concluded that SMEs in software industry have financing difficulties and supply chain finance can alleviate this financial dilemma to some extent. Furthermore, the essay analyzes risk points of three different forms of supply chain finance and puts forward some suggestions about risk management for small and medium-sized enterprises, bank and third-party logistics.