Supply chain financing is a financing mode that takes the core enterprises in the supply chain and their related upstream and downstream supporting enterprises as a whole, and formulates an overall financial solution based on cargo rights and cash flow control according to the transaction relationship and industry characteristics of enterprises in the supply chain. The following are the supply chain financing products and case studies I brought to you, hoping to help you.
What is supply chain financing?
"Supply chain financing" is to find a large-scale core enterprise in the supply chain, starting from the core enterprise and providing financial support for the node enterprises in the supply chain.
On the one hand, supply chain financing can effectively inject funds into upstream and downstream supporting small and medium-sized enterprises, and solve the problems of financing difficulties and supply chain imbalance of supporting enterprises; On the other hand, the credit of banks or financial institutions should be integrated into the purchase and sale behavior of upstream and downstream supporting enterprises, so as to enhance their commercial credit and promote the establishment of long-term strategic coordination between supporting enterprises and core enterprises, thus enhancing the competitiveness of the whole supply chain.
The main operational ideas of supply chain financing are: first, straighten out the information flow, capital flow and logistics of supply chain-related enterprises; Banks and financial institutions integrate the capital flow of banks or financial institutions with the logistics and information flow of enterprises according to the stable and supervised accounts receivable and accounts payable information and cash flow; Then banks or financial institutions provide enterprises with comprehensive business services such as financing and settlement services.
The unified management and coordination of logistics, capital flow and information flow enables participants, including enterprises in the supply chain and banks or financial institutions, to share their own "cheese", thus further improving the efficiency of supply chain management. At the same time, warehousing and logistics companies can help financial institutions reduce credit risk through direct control of materials.
What are the supply chain financing products?
Order financing for small and medium-sized enterprises: Enterprises apply to China Construction Bank for financing for small and medium-sized enterprises on the basis of purchase and sale contracts and real and effective purchase orders issued by buyers, and suppliers can obtain funds in advance and successfully complete the order contracts.
Chattel financing for small and medium-sized enterprises: In the normal course of business, enterprises pledge their own chattels recognized by China Construction Bank, hand them over to a warehousing company recognized by China Construction Bank for safekeeping, and apply for credit from China Construction Bank.
Warehouse receipt financing for small and medium-sized enterprises: enterprises pledge the warehouse receipts of professional storage companies recognized by China Construction Bank and apply for credit business from China Construction Bank.
Factoring: in essence, it is a buyout business of accounts receivable, providing comprehensive solutions for sellers' enterprises, including SME financing, account management, buyer's credit guarantee, etc.
Accounts receivable financing for small and medium-sized enterprises: enterprises apply to CCB for financing for small and medium-sized enterprises with the accounts receivable generated from credit sales as collateral.
Policy SME financing: Enterprises apply to China Construction Bank for SME financing based on domestic trade credit policy.
Corporate account overdraft: CCB gives customers overdraft within the agreed account and agreed quota to meet the convenience of customers' temporary SME financing.
Financing of small and medium-sized enterprises in bonded warehouses: the core enterprises, distributors and CCB in the supply chain cooperate, and the bank controls the right to take delivery. Core enterprises are entrusted with the custody of goods and bear the responsibility of repurchase, which is a product for financing small and medium-sized enterprises among distributors.
Financing of small and medium-sized enterprises in Jinyincang: based on the credit of core enterprises, short-term SME financing credit business is provided for dealers through the product combination of order SME financing, warehouse receipt SME financing, enterprise account overdraft and bank acceptance bill.
Case analysis of supply chain financing
Supply chain financing model based on accounts receivable. Carrefour is one of the top 500 enterprises in the world, with stable operation, clear payment terms and contract execution for upstream suppliers, and tens of thousands of suppliers around the world. Banks can take Carrefour as a core enterprise and design a supply chain financing model for its upstream suppliers. Combined with the accounts payable and contract term over the years, the supplier is given a credit line after comprehensive evaluation, which can be recycled after repayment. Banks need Carrefour to pay the money paid to upstream suppliers to banks, thus completing a closed capital chain cycle. Supply chain financing model can alleviate the financial pressure of suppliers and promote banks to acquire more customers. There are several risk points:
Risks of Carrefour: Will Carrefour have risks such as operation, taxation and personnel changes? If so, can it still pay the supplier according to the contract? In trading companies, it is common to default on payment. Once such risks occur, it will seriously affect the security of bank loans.
Risks of upstream suppliers: mainly manifested in whether the supply scale of Carrefour is stable, whether the product quality is stable, and whether the standardization of operation can withstand the inspection risks of government departments such as taxation, industry and commerce, fire protection and health. Because the upstream suppliers are often small in scale, the stability and standardization of operation can not be guaranteed, and the risk of the government is often low. Therefore, it is necessary to dynamically assess the risks of upstream suppliers according to the transaction data of upstream suppliers and Carrefour.
The cooperation risk between upstream suppliers and Carrefour: mainly lies in whether there are problems in the cooperation between upstream suppliers and Carrefour. Among them, the fluctuation of supply scale can reflect many problems, so it is very important to know the transaction data of Carrefour and suppliers in time.
The risk control strategy is as follows:
Continuously and dynamically evaluate the business risks of core enterprises, so as to timely adjust the credit granted by the Bank to its upstream suppliers and downstream distributors.
Continuously and dynamically evaluate the credit risk of core enterprises. Credit risk mainly comes from the company's consistent behavior or capital turnover difficulties and major projects. When the cash flow of core enterprises is difficult, the credit risk of banks will be passed on to upstream suppliers or downstream distributors, who are the first undertakers of credit.
Contract risks of upstream and downstream partners and core enterprises. As the main body of the supply chain, the contracts between core enterprises and upstream and downstream partners are often unfair, but the contracts must not be controversial, especially in the settlement of funds. Through the data sharing of core enterprises, we will continuously monitor the sales data of upstream and downstream partners, understand the structural changes of core upstream and downstream partners, and adjust the bank's credit target and credit scale in time.
Supply chain financing is of great benefit to the development of enterprises themselves. At the same time, supply chain financing is aimed at the whole industrial chain, which greatly reduces the financing cost, makes the financing of enterprises cheaper and more convenient, and has a positive impact on the production development of enterprises.
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