At the same time, since credit sales have become the mainstream method of transactions , it is difficult for suppliers in the upper and middle reaches of the supply chain
to obtain financial support from banks through "traditional" credit methods, and the shortage of funds will directly lead to the stagnation of subsequent links, or even "Broken link" appears.



maintenance survival where the supply chain, to improve the effectiveness of supply chain financial operations, reducing overall supply chain management costs, each has become
an important issue to actively explore, therefore, a "supply chain financing" series of financial products have emerged.



 

The characteristics of supply chain finance:
The supply chain is through the control of information flow, logistics, and capital flow, starting with the purchase of raw materials, making intermediate products and final products, and
finally delivering the products to consumers through the sales network , bringing suppliers, manufacturers, and distributors , retailers, and end users are connected into a
whole functional network chain structure.
 

It is not only a supplier connected to the user's logistics chain, information chain, the capital chain, and is an increase in the value chain, materials supply chain in
the process due to processing, packaging, transportation and increase its value to the relevant business revenue .
Generally speaking, the supply chain of a particular product starts from the procurement of raw materials, to the production of intermediate and final products, and finally the
products are delivered to consumers by the sales network , from suppliers, manufacturers, distributors, retailers, and the end users. Connected as a whole.

In this supply chain, core companies with strong competitiveness and large scale often
impose severe demands on upstream and downstream supporting companies in terms of delivery, price, and billing terms due to their strong positions. pressure.
The upstream and downstream supporting enterprises are mostly small and medium-sized enterprises, and it is difficult to obtain financing from banks. As a result, the capital chain is very tight and the
entire supply chain is out of balance.
 

The biggest feature of "supply chain finance" is to find a large core enterprise in the supply chain, and take the core enterprise as the starting point
to provide financial support for the supply chain.
On the one hand, it will effectively inject funds into relatively disadvantaged upstream and downstream supporting SMEs to solve the problems of SMEs’ financing difficulties and supply chain imbalances
.
On the other hand, integrating bank credit into the buying and selling behavior of upstream and downstream enterprises, enhancing their commercial credit, promoting SMEs and core enterprises to
establish long-term strategic synergies, and enhancing the competitiveness of the supply chain.
 

Under the financing model of "supply chain finance", once an enterprise in the supply chain obtains the support of the bank, the "cord blood" of funds is
injected into the supporting enterprise, which
is equivalent to entering the supply chain, which can activate the entire "chain" operation; and with the support of bank credit, but also for
small and medium enterprises to win more business opportunities.
Supply chain finance originated from traditional banks. However, under the impact of Internet technology, the threshold of finance has also been lowered. Internet finance has
provided the market with more choices.
Under the supply chain finance model, for core companies, related companies in the supply chain can still share capital risks for them.
For the upstream and downstream enterprises of the core enterprise, with the credit support of the core enterprise, the loan line can be smoothly obtained at a lower cost.
For P2P and other capital suppliers, through cooperation with core large enterprises, they can master the complete capital flow, logistics and information flow in the supply chain and
other core data, so as to transform the uncontrollable risks of a single enterprise into the overall controllable supply chain Risk, so as to control the risk more effectively

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