Three main businesses of supply chain finance At present, there are three main modes of supply chain finance: accounts receivable financing, real warehouse financing and chattel pledge financing. Accounts receivable mode: upstream SMEs transfer the credit certificate (SME accounts receivable) given by the core enterprises to financial institutions for financing and white-body operation. If SMEs can't repay within the repayment period, financial institutions can use accounts receivable to collect money from core enterprises. So for financial institutions, the source of repayment is equivalent to changing the core enterprises of small and medium-sized enterprises, that is, the first source of repayment is the core enterprises, and the second source of repayment is the operating profit of small and medium-sized enterprises, thus reducing the loan risk. In this mode, because the core enterprises must pay on time, there is no difference between paying to SMEs and paying to financial institutions, but it helps SMEs to complete financing problems and improve the overall efficiency of supply chain funds.

1. Supply chain finance (SCF) refers to introducing new risk control variables, such as core enterprises and third-party enterprises (such as logistics companies), and analyzing the internal transaction structure of the supply chain. Financial institutions (such as commercial banks and online financial platforms) provide credit and other comprehensive financial services, such as settlement and financial management, to different nodes in the supply chain. Supply chain finance is a win-win ecosystem for banks and enterprises. For small and medium-sized enterprises, supply chain finance provides new financing tools for small and medium-sized enterprises and can alleviate their financing difficulties. For banks and other fund providers, providing credit through the credit constraint between small and medium-sized enterprises and core enterprises reduces the risk of lending to small and medium-sized enterprises and obtains higher returns. The essence of supply chain finance is to help enterprises revitalize their current assets and solve financing problems with the help of risk control variables. We know that the most important current assets are cash and equivalents, accounts receivable and inventory.

2. Confirmed warehouse mode: Downstream SMEs pay a certain margin to financial institutions and lend to financial institutions with the credit of core enterprises. The loan obtained can buy goods from the core enterprises. So how to ensure that the financing purpose of small and medium-sized enterprises is to buy goods? Financial institutions introduce third-party supervision enterprises (generally logistics enterprises) to supervise the goods of core enterprises. According to the amount of margin paid by SMEs and the credit status of core enterprises, they can issue a corresponding number of goods to SMEs, that is, SMEs can only issue goods but not currency. Small and medium-sized enterprises can apply to the bank for the next payment when selling the corresponding goods. For the goods to be sold at this stage, this cycle will continue until the storage capacity of the third-party supervision company is zero or the downstream SMEs no longer demand procurement. At this point, the core enterprises must bear the responsibility of commodity recycling.