scholarly journals Analysis on Supply Chain Finance Accounts Receivable Financing Mode Game

2015 ◽  
Author(s):  
Zhigao Liao ◽  
Xiaojing Zhao ◽  
Ze Feng
Keyword(s):  
Supply Chain ◽  
Accounts Receivable ◽  
Financing Mode ◽  
Supply Chain Finance

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 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.

scholarly journals MODELING AND SIMULATION FOR SUPPLY CHAIN FINANCE UNDER UNCERTAIN ENVIRONMENT

2020 ◽  
Vol 26 (4) ◽  
pp. 725-750 ◽  
Author(s):  
Wei Jin ◽  
Chengfu Wang
Keyword(s):  
Supply Chain ◽  
Trade Credit ◽  
Stackelberg Game ◽  
Hybrid Strategy ◽  
Accounts Receivable ◽  
Capital Shortage ◽  
Supply Chain Finance ◽  
Bankruptcy Costs ◽  
Financial Characteristics

This paper studies the role of factoring in a bilateral supply chain, where both the supplier and retailer are financially constrained. Applying the stylized Stackelberg game, we analytically present that the supplier’s capital shortage limits the advantage of trade credit provided to the retailer. To overcome this limitation, we design a hybrid strategy composing of trade credit and factoring, and then investigate how the supplier uses factoring strategy to achieve the best performance. Analytical and numerical results show that: (1) each supply chain partner can benefit from factoring, and the benefits depend on operational and financial characteristics; (2) in a fairly priced factoring market, bankruptcy costs reduce the benefits of factoring, but does not change the dominance of full factoring; (3) in a strategically priced factoring market, partial factoring may dominate full factoring. Managerially, our study implies that a supplier may benefit from dividing his accounts receivable when facing a factor with a strong pricing ability.

scholarly journals Analysis on Credit Risk Assessment for Accounts Receivable Supply Chain Financing Based on Credit Insurance

2021 ◽  
Vol 275 ◽  
pp. 01065
Author(s):  
Keran Bi ◽  
Zheng Hua ◽  
Qinwen Shi ◽  
Yu Zhu
Keyword(s):  
Risk Assessment ◽  
Supply Chain ◽  
Credit Risk ◽  
Insurance Companies ◽  
Accounts Receivable ◽  
Credit Risk Assessment ◽  
Credit Insurance ◽  
Credit Risks ◽  
Financing Mode ◽  
Supply Chain Financing

This paper studies the model of accounts receivable supply chain financing based on credit insurance from the perspective of banks. First of all, the paper analyzes two different financing modes of the innovative model - the pledge financing mode and the factoring financing mode. Secondly, the paper explains the sources of credit risks for accounts receivable supply chain financing under credit insurance, and the necessity of using credit insurance. The sources of credit risks mainly include: the enterprises’ comprehensive strength under systemic and non-systemic risks, status of accounts receivable, supply chain operation, performance of insurance companies, and so on. In addition, based on the credit risks explained in this paper, the risk assessment system and the credit risk assessment model are built. At the end, the paper offers three suggestions for the banks’ financing risk control: bank should carefully check the policy’s exclusions clauses; bank must carefully check the authenticity of accounts receivable; bank can use dynamic monitoring on qualification checking for financing enterprises, core enterprises and insurance companies.

scholarly journals Zheshang Bank’s “Blockchain + Supply Chain Finance” Accounts Receivable Financing Model of Research

2021 ◽  
Vol 275 ◽  
pp. 01074
Author(s):  
LiYuan Meng ◽  
Cong Du
Keyword(s):  
Supply Chain ◽  
Commercial Bank ◽  
Financial Services ◽  
Banking Industry ◽  
Chain Model ◽  
Corporate Financing ◽  
Accounts Receivable ◽  
Existing Problems ◽  
Blockchain Technology ◽  
Supply Chain Finance

Because small and medium-sized enterprises have problems such as high operating risks and a small proportion of real estate, they are facing difficulties in financing. Commercial bank supply chain finance provides an effective way for small and medium-sized enterprises to finance, and to a certain extent solves the problem of corporate financing difficulties. However, some of its existing problems have restricted its innovation and development. The “blockchain + supply chain finance” dual-chain model has effectively overcome the shortcomings of the banking industry in developing supply chain financial services. This article takes Zheshang Bank’s accounts receivable chain platform as the research object, explores the advantages and related risks brought by the application of blockchain technology, and puts forward the optimization suggestions of Zheshang Bank’s accounts receivable chain in supply chain finance.

Financing a capital-constrained supply chain: factoring accounts receivable vs a BCT-SCF receivable chain

Kybernetes ◽  
2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Dan Tang ◽  
Xintian Zhuang
Keyword(s):  
Mathematical Model ◽  
Supply Chain ◽  
Content Type ◽  
Accounts Receivable ◽  
Supply Chain Finance ◽  
Financing Channels ◽  
Financing Channel ◽  
The Cost ◽  
First Time ◽  
Practical Implications

Purpose Blockchain-driven supply chain finance (BCT-SCF) has recently been receiving increased global attention. A number of business programmes have been carried out using this approach, but existing research has rarely focussed on this novel SCF model. This paper aims to fill this gap by proposing a mathematical model to analyse the value of BCT-SCF. Design/methodology/approach First, this paper considers a multi-period two-echelon supply chain consisting of a capital-constrained supplier and a newsvendor-like retailer. Then, two financing channels are proposed. The supply chain actors can either factor accounts receivable (AR) from a bank or obtain financing through a BCT-SCF platform by which AR can be converted into a bill receivable and used to make payment. Further, to investigate the preferences of all actors between the two financing channels, this paper compares the two channels and examines how the degree of financial constraints and the cost of implementing the BCT-SCF model impact the financing preferences of all actors. Findings BCT-SCF model can help a supply chain realise its optimisation both in production and financing efficiency, the preference for the BCT-SCF model increases as the initial capital of supplier and the BCT-SCF platform usage fee rate decrease. Practical implications This research bridges the gap between theoretical analysis of BCT-SCF and its realistic application. The results demonstrate that with the BCT-SCF model, a win-win situation among supply chain actors is possible, which is helpful for the supply chain to choose a more efficient financing channel. Originality/value This research introduces a mathematical model based on the “receivable chain” of CZBank and the model is set in a multi-period supply chain, which is the first time BCT-SCF has been considered as part of a more complex but realistic background setting.

scholarly journals Blockchain Technology Adoption in Supply Chain Finance

2021 ◽  
Vol 16 (7) ◽  
pp. 3078-3098
Author(s):  
Arief Rijanto
Keyword(s):  
Supply Chain ◽  
Technology Adoption ◽  
Perceived Usefulness ◽  
Smart Contracts ◽  
Accounts Receivable ◽  
Transaction Data ◽  
Purchase Order ◽  
Blockchain Technology ◽  
Supply Chain Finance ◽  
Distributed Ledger

Supply Chain Finance (SCF) faces the complex problem of implementing inventory, purchase order and accounts receivable financing automation in terms of transaction data trust and validation. This paper aims to explore how blockchain technology adoption solves the SCF problem using a multi-case method based on the Technological Acceptance Model (TAM). With purposive sampling, 30 cases were selected on the criteria of perceived usefulness and perceived ease of use in solving SCF problems. The results show that trust, validity and distributed ledger transaction data as perceived usefulness are the main drivers of blockchain adoption because it provides solutions to SCF automation problems such as Know Your Customer (KYC), accounting, and transaction settlement. Smart contracts offer easy and fast transactions such as in L/C export processing as perceived ease to use. Of the 30 blockchain projects, 21 offer the usefulness of automated accounts receivable financing, 15 offer easy-to-use purchase order financing and 8 offer easy-to-use inventory financing processes. This study provides the current state of blockchain technology adoption by exploring 30 real application cases in SCF globally. Blockchain advantages provide automation solutions in global supply SCF practices with smart contracts, transparency and security of distributed ledger data feature.

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