As a natural evolution of industrial model upgrading, supply chain finance has a profound industrial foundation, subverting the paradigm of traditional finance "finance-based finance" and opening another window, which has both financial explosiveness and industrial durability.

How to evaluate the business quality of supply chain finance?

We propose a five-dimensional model: big industry, weak upstream and downstream, strong control, low cost and high leverage, and standardization.

A large industry means a large industrial space and it is not easy to touch the ceiling;

Weak upstream and downstream means that at least one of the customers is weak and cannot obtain cheap funds from the bank;

Strong control means having real transaction data and credit information online, backed by logistics and warehousing offline, so as to control risks;

Low cost means low capital cost, which makes supply chain finance profitable without excessively increasing the burden of financiers. High leverage means that a certain amount of principal investment can incite a large number of assets;

Standardization means that the collateral (mortgage) used for financing is relatively standardized and has a fair market. Even if it is out of danger, it can be cleared quickly. If you have five elements at the same time, supply chain finance will come naturally.

According to the five-dimensional model, five fields, such as commodities, industry or regional leaders, industry information service providers, e-commerce platforms and specialized markets, are fertile ground for supply chain finance.

Rushing to the beach of financial service gap

The financing difficulty of small and medium-sized enterprises has always been a long-standing social problem, especially in the economic transition period. Expand reproduction, either through endogenous accumulation or through private usury. The annual financing cost of 8%-20% has become the blind spot of traditional finance, and therefore has become the main battlefield of financial innovation.

The biggest innovation of supply chain finance lies in filling the gap of financing interest rate of 8%-20% and opening the financing valve of small and medium-sized enterprises. Theoretically, banks are the most ideal financing targets for small and medium-sized enterprises, and the cost is between 6% and 8%. However, from the perspective of income-risk ratio, banks are more willing to open their doors to large enterprises, rather than taking excessive risks.

Small and medium-sized enterprises are forced to turn to private lending, and the average interest rate of private lending is around 27%. The high financing cost squeezes the living space of small and medium-sized enterprises and reduces their investment, which is not conducive to the development of the whole supply chain.

The financing service gap of 8%-20% reflects the structural lack of financial services and the unreasonable high-risk compensation required by social capital for SMEs.

Compared with traditional non-bank institutions, supply chain finance has many advantages:

Supply chain finance relies on years of industry immersion, and the risk control end naturally has advantages;

If non-bank institutions do pure finance, supply chain finance is trying to build a financial ecology;

In the supply chain financial system, all non-bank institutions have become a part of the system;

Supply chain finance is essentially big data finance, which is more scalable.

Simultaneous reading:

It is the general trend for supply chain financial innovation to serve entity enterprises online and platform.

Under the trend of increasingly strict financial supervision, supply chain finance has gradually become a new force, and now it has penetrated into various fields and played a very important role in the development of enterprises and financial industry in China. Faced with the huge market space of trillions of dollars, the state requires financial institutions to return to their true business origins. So how do commercial banks carry out financial innovation, put funds into entity enterprises through supply chain finance, and serve economic and social development?

0 1

Supply chain finance financing problem

The production process of a product is divided into three stages, that is, raw materials-intermediate products-finished products, and different people are needed to divide the production in different stages of product production. Some enterprises complete the collection of raw materials for products, and some enterprises * * * complete the production and processing of products at the same link and connect with downstream distributors, and the distributors complete the sales of products. This chain-like functional structure is what we call supply chain.

Small and medium-sized enterprises in the supply chain, especially suppliers above the third level, are faced with financing difficulties, expensive financing, chaotic financing and financing insurance. Sometimes even the interest rate of 10-20% can't make money, which is twice or even several times higher than the loan cost of large and medium-sized enterprises.

So, where is the root of the financing difficulty? At the bank! Supply chain finance, based on the current assets of the supply chain, the interest rate coverage is 8-20% per year, and 12% is a threshold! More than 8- 12%, 12- 15% and 15% respectively represent different capital supply and demand, which indirectly reflects the risk premium of capital.

2

Supply chain finance financing problem

With the help of credit transmission in the supply chain, financial institutions headed by banks apparently meet the capital needs of small and medium-sized enterprises that are difficult to obtain customers, evaluate, borrow and combine loans, because in the eyes of banks, enterprises with these three conditions are the ideal financing targets:

Condition 1: enterprises with reliable credit

Enterprises that meet this condition require not only the ability to fully grasp the closed loop of supply chain, but also the reliability of their own credit and the ability to provide credit endorsement for supply chain.

Condition 2: Enterprises with reliable turnover of goods

After the credit funds of these enterprises are converted into commodities, these enterprises can master the commodities and their own users, and sell and dispose of the commodities quickly when risks arise, so as to stabilize the capital turnover.

Condition 3: Enterprises with good risk control.

The risk control mode of supply chain finance is different from the traditional risk control mode. Many of its risk control models are based on the transaction data of core enterprises. If you can't provide real transaction information, it will affect the risk control and capital security of the supply chain financial model.

Why can't supply chain finance connect with bank funds? In other words, it is necessary to achieve bank compliance, and it is possible to directly dock the funds of commercial banks. In this regard, we need not only financial innovation, but also more understanding and familiarity with the operation of commercial banks in order to fundamentally help banks meet compliance requirements.

03

Development trend of supply chain finance

First, online is the general trend.

At present, many commercial banks are trying to build their own or cooperate with e-commerce platforms to carry out online supply chain finance. The online supply chain financial service platform of financing enterprises will be able to apply for loans by itself, and the platform system will conduct real-time approval and automatic lending. Every loan repayment of an enterprise is completed online, and the procedure is simple and easy, which will greatly reduce the financing cost of small and medium-sized enterprises and improve the capital turnover rate of enterprises.

The trend of online will improve the efficiency of capital use and break the traditional supply chain finance model dominated by commercial banks, thus greatly broadening the scope and boundary of traditional supply chain finance.

Second, it is more conducive to deepening the vertical supply chain.

The application of supply chain finance in different industries will promote the development of supply chain finance in a more vertical, accurate and professional direction. Each industry has its own industry attributes and characteristics, so enterprises in different industrial chains have different and diversified financial service demand characteristics.

It can be predicted that all participants in supply chain finance can provide personalized supply chain financial products and services for enterprises in vertically subdivided supply chains on the basis of fully understanding the industry attributes and characteristics, and there will be more suppliers of supply chain financial models or platforms in future subdivided industries.

Third, platform-based big data applications.

Participants in supply chain finance build a big data platform through self-construction or cooperation with big data institutions, calculate the range of standard data based on a large number of real transaction data sources, and make a comprehensive and reasonable judgment on the credit status of loan enterprise customers through the matching of upstream and downstream enterprise data.

The application of big data in supply chain finance business can quickly help participants to sort out and analyze a large number of non-standardized transaction data, and can help participating enterprises save costs, improve information utilization efficiency and provide financing services.