Supply chain finance is to provide comprehensive financial services for a single enterprise or multiple enterprises in the industrial supply chain, so as to promote the stable and smooth circulation of the "production, supply and marketing" chain of core enterprises and upstream and downstream supporting enterprises in the supply chain. Through the cooperation of financial capital and industrial economy, an industrial ecology of mutual benefit, win-win, sustainable development and benign interaction between banks or related financial institutions, enterprises and commodity supply chains is constructed. For example, Hao Mingjin Finance is a well-known financial service platform for consumer goods supply chain in China.
What is supply chain finance?
Supply chain finance means that financial institutions (such as commercial banks and additive pocket platforms) introduce new risk control variables such as core enterprises and third-party enterprises (such as logistics companies) on the basis of analyzing the internal transaction structure of the supply chain, and provide closed credit and settlement, wealth management and other comprehensive financial services to different nodes in the supply chain.
What exactly does supply chain financing mean?
Supply chain financing is essentially N+ 1+M financing, with "1" as the core, that is, the core manufacturer, which extends the bank's financial package to n upstream suppliers and m downstream distributors. In the whole supply chain, core manufacturers try to extend the payment period when purchasing raw materials from upstream suppliers, and require them to pay in advance when selling products to downstream distributors, which will lead to the shortage of funds for upstream and downstream SMEs. Supply chain financing is to provide comprehensive financial solutions for upstream and downstream SMEs of core enterprises, that is, its target is raw material suppliers and distributors of core enterprises.
Comprehensive financial schemes of supply chain financing are usually divided into three categories: spot financing products, accounts receivable financing products and prepayment financing products. Spot financing products include: static chattel pledge, dynamic chattel pledge, ordinary warehouse receipt pledge and standard warehouse receipt pledge; Accounts receivable financing products include: domestic factoring, international factoring (import and export), accounts receivable pledge, accounts receivable pool and bill pool financing; Prepayment financing products include: bill before goods, production prepayment and future goods pledge financing.
Example:
1) Enterprise A is the supplier of core enterprise B. When B purchases raw materials from A, the agreed payment term is 90 days.
At this time, enterprise A can apply to the bank for accounts receivable financing products, such as factoring products or factoring pool products. After the delivery, enterprise A transfers the creditor's rights of accounts receivable to the bank, and the bank provides financing support for enterprise A. ..
2) Enterprise C is the distributor of core enterprise B. When B sells products to C, it requires C to pay in advance.
At this time, enterprise C can apply to the bank for early repayment of wealth management products, enterprise C pays a certain percentage of deposit to the bank, and the bank issues a bank draft to enterprise B, and enterprise B makes delivery to enterprise C after receiving the bank draft.
3) Enterprise A is a production enterprise with a large inventory.
When enterprise A is short of funds, it can put forward inventory pledge financing products to the bank, and pledge the goods rights to the bank under the supervision of a third-party supervision company, and the bank provides financing support for enterprise A. ..
Key points of audit for three types of business:
1) Accounts receivable: We should pay attention to whether the accounts receivable are qualified, that is, whether the creditor's rights are defective, whether the rights are disputed, whether the pledge is repeated, whether the company is associated with the counterparty, whether the account period is in line with the regulations, whether it is controversial, etc.
2) Spot category: whether the ownership is clear, easy to save, easy to realize, repeated pledge, etc. Whether the price fluctuation is too large, whether the supervision company is qualified, and whether the pledge fee is complete. ;
3) Prepayment category: whether the core enterprise provides guarantee, whether it buys back, whether the margin ratio meets the requirements, whether the value is stable, etc.
The above are all accumulated experiences, I hope it will help you!
What are industrial chain finance and supply chain finance?
Industrial chain finance and supply chain finance are roughly the same. Simply put, by controlling the capital flow of upstream and downstream enterprises around the core enterprises of big brands, the risks that are difficult for a single enterprise to control can be transformed into controllable risks of the whole industrial chain, which can effectively ensure the overall safety and stability of the project.
What is supply chain finance?
Generally speaking, the supply chain of a specific commodity goes from the procurement of raw materials to the manufacture of intermediate products and final products, and finally the products are delivered to consumers by the sales network, which connects suppliers, manufacturers, distributors, retailers and end users as a whole. In this supply chain, the core enterprises with strong competitiveness and large scale, because of their strong position, often put forward harsh requirements for upstream and downstream supporting enterprises in terms of trade terms such as delivery, price and payment term, which has caused great pressure on these enterprises. Most of the upstream and downstream supporting enterprises are small and medium-sized enterprises, so it is difficult to raise funds from banks. As a result, the capital chain is very tight and the whole supply chain is unbalanced.
The biggest feature of "supply chain finance" is to find a big core enterprise in the supply chain and provide financial support for the supply chain with the core enterprise as the starting point. On the one hand, effectively inject funds into the upstream and downstream supporting small and medium-sized enterprises in a relatively weak position to solve the financing difficulties of small and medium-sized enterprises and the imbalance of supply chain; On the other hand, bank credit should be integrated into the purchase and sale behavior of upstream and downstream enterprises to enhance their commercial credit, promote the establishment of long-term strategic cooperation between small and medium-sized enterprises and core enterprises, and enhance the competitiveness of supply chain.
Under the financing mode of "supply chain finance", once the enterprises in the supply chain are supported by banks, the "cord blood" of funds will be injected into the supporting enterprises, which means entering the supply chain, thus activating the operation of the whole "chain"; And with the support of bank credit, it has won more business opportunities for SMEs.
What does supply chain finance company mean?
Financing difficulty of small and medium-sized enterprises has always been a major difficulty in their development. Small and medium-sized enterprises are prone to cash flow tension or even breakage because of their small scale. Therefore, how to revitalize funds has become the most concerned issue for SMEs. Supply chain finance is based on the real transaction background of supply chain. It is different from the traditional bank lending in the past, and can better solve the financing difficulties of small and medium-sized enterprises caused by unstable operation, lack of credit and lack of assets.
Traditional bank loans make a static analysis of the past financial information of enterprises, and make credit decisions based on the isolated evaluation of credit subjects. Therefore, banks do not know the real operating conditions of SMEs. On the contrary, supply chain finance evaluates the credit status of the whole supply chain and strengthens the structural control of the debt itself. On the premise of real transactions, supply chain finance makes up for the lack of credit of small and medium-sized enterprises with the information advantages of large enterprises, thus comprehensively improving the credit level and credit ability of small and medium-sized enterprises in the industrial chain. The essence of supply chain finance is credit financing, and credit is found in the industrial chain.
At present, supply chain finance belongs to emerging finance. Whether supply chain finance can be done well is directly related to service enterprises' understanding of the industry, their ability to control risks and their strategic cooperation with banks. For example, the supply chain finance of Yuntu is centered on risk control and big data management capabilities. To carry out supply chain finance, we must have comprehensive abilities such as understanding the industry, understanding the financing methods, identifying risks and designing financial products and schemes. Data theory and port theory are not enough.
What is the difference between supply chain financing and supply chain finance? Urgent, 5 points
Supply chain financing is similar to "logistics bank" and "financing warehouse". Around the "1" core enterprise, through the combination of spot pledge and futures cargo right pledge, the supply chain from raw material procurement, intermediate products and finished products to final delivery of products to consumers through sales network is opened, and suppliers, manufacturers, distributors, retailers and end users are connected into a whole, which is an all-round "chain"
Different from traditional bank wealth management products, the innovation of supply chain financing service is to seize the stable supply chain of large-scale high-quality enterprises, design products around enterprises with standardized upstream and downstream operations, good credit standing, stable sales channels and sufficient repayment funds, and select qualified upstream and downstream enterprises as the financing targets of commercial banks centered on large core enterprises. This kind of business not only breaks through the traditional rating credit requirements of commercial banks, but also does not need to provide collateral guarantee separately, which effectively solves the financing problem of small and medium-sized enterprises.
Supply chain financing is closely related to supply chain management. Supply chain management is a management model for the supply chain network of core enterprises, and supply chain financing is a business model for banks or financial institutions to provide financial services for all node enterprises in the supply chain of core enterprises.
Supply chain is a functional network chain structure around core enterprises, which connects suppliers, manufacturers, distributors, retailers and end users into a whole by controlling information flow, logistics and capital flow. Starting from purchasing raw materials, it manufactures intermediate products and final products, and finally delivers products to consumers through sales network. It is not only the logistics chain, information chain and capital chain connecting suppliers and users, but also the value-added chain. Materials in the supply chain increase in value due to processing, packaging and transportation, which brings benefits to related enterprises.
The core enterprise of the supply chain is usually the manufacturer. On the one hand, the supply chain presents a network structure dominated by core enterprises, which determines that the financial strength of supporting enterprises in the supply chain does not match the core enterprises, and supporting enterprises are in a weak position in the capital chain; Moreover, due to the strength of core enterprises, supporting enterprises are at a disadvantage in information and negotiation, which in turn leads to the further strengthening of their capital needs. On the other hand, fixed assets only account for a small part of the assets of supporting enterprises, and liquidity, inventory and raw materials are the main forms of their assets, while the credit rating of supporting enterprises is generally low, which makes it difficult for supporting enterprises to obtain loan services provided by means of fixed assets mortgage guarantee from banks or financial institutions. Logistics, capital flow and information flow are the three major elements of supply chain operation. The gap supporting enterprise capital flow will be difficult to maintain the continuity of supply chain, and will also cause the loss and waste of resources.
"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, effectively inject funds into the upstream and downstream supporting small and medium-sized enterprises in a relatively weak position to 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.
Supply chain finance (SCF) is a professional field of credit business of commercial banks (bank level) and a financing channel for enterprises, especially small and medium-sized enterprises (enterprise level).
It means that banks provide customers (core enterprises) with settlement and wealth management services such as financing, and at the same time provide convenience for suppliers of these customers to receive loans in time, or provide advance payment and inventory financing services for their distributors. (Simply put, it is a financing mode in which banks link core enterprises with upstream and downstream enterprises to provide flexible financial products and services. )
The above definition is very close to the traditional factoring business and goods mortgage business (mortgage/pledge credit of movable property and goods rights). But there are obvious differences, that is, factoring and goods mortgage are only simple trade financing products, while supply chain finance is a systematic financing arrangement for all members of the supply chain, which is reached between core enterprises and banks.
purpose
"Euromoney" magazine described supply chain finance as "the hottest topic in bank transaction business" in recent years. According to a survey, supply chain financing was the annual working capital of international banks in 2007. .......................................................................................................................................................... >
What is supply chain financing?
The core enterprise of the supply chain is usually the manufacturer. On the one hand, the supply chain presents a network structure dominated by core enterprises, which determines that the financial strength of supporting enterprises in the supply chain does not match the core enterprises, and supporting enterprises are in a weak position in the capital chain; Moreover, due to the strength of core enterprises, supporting enterprises are at a disadvantage in information and negotiation, which in turn leads to the further strengthening of their capital needs. On the other hand, fixed assets only account for a small part of the assets of supporting enterprises, and liquidity, inventory and raw materials are the main forms of their assets, while the credit rating of supporting enterprises is generally low, which makes it difficult for supporting enterprises to obtain loan services provided by means of fixed assets mortgage guarantee from banks or financial institutions. Logistics, capital flow and information flow are the three major elements of supply chain operation. The gap supporting enterprise capital flow will be difficult to maintain the continuity of supply chain, and will also cause the loss and waste of resources. "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, effectively inject funds into the upstream and downstream supporting small and medium-sized enterprises in a relatively weak position to 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. Under the supply chain financing mode, once the supply chain node enterprises get the support of banks or financial institutions, the "cord blood" of funds will enter the supporting enterprises. It is equivalent to entering the supply chain, which can activate the whole supply chain and enhance its market competitiveness. Supply chain financing can not only help solve the financing difficulties of supporting enterprises, but also promote the effective interaction between finance and industry, so that banks or financial institutions can jump out of the limitations of a single enterprise, examine the development of the real economy from a macro perspective, and shift from static concern to dynamic tracking of enterprise management, thus fundamentally changing their observation vision, thinking context, credit culture and development strategy. For banks or financial institutions, the overall credit of the supply chain is stronger than that of individual enterprises in the industrial chain. The interest rate and loan ratio provided by banks or financial institutions change with the production stage and adjust with the credit risk. For example, in the order stage, because of high uncertainty and high interest rate, the loan ratio is correspondingly low, but with the progress of the production process, the credit risk is reduced, the interest rate is reduced and the loan ratio is increased. Therefore, the combination of risk and income fully meets the financing needs of banks or financial institutions for risk control and customer care. Moreover, due to the combination of supply chain management and finance, many cross-industry service products have been produced, and correspondingly, many new financial instruments have been required, such as domestic letters of credit and online payment, which provide great business opportunities for banks or financial institutions to increase their intermediary business income. The main connotation of supply chain financing is taken from China Federation of Logistics and Purchasing 1. Supply chain financing is different from traditional financing business, and its essence is the change of credit culture of banks or financial institutions. 2. Supply chain financing is different from supplier financing. 3. Supply chain financing is not a single financing product, but a sequence combination of various products. 4. Supply chain financing focuses on the flexible use of financial products and services. 5. The object of supply chain financing is limited to supporting enterprises closely related to core enterprises and commodity trading. 6. Supply chain financing includes many specific business models, each of which contains different products. 7. Supply chain financing can greatly reduce business risks. 8. The operational risk of supply chain financing business has improved. 9. Need to dynamically analyze the enterprise situation. 10.From > & gt
What is supply chain finance and what are its types?
Supply chain finance is a good thing, I hope you can have it.
As a natural evolution of industrial model upgrading, supply chain finance has a profound industrial foundation, subverting the paradigm of "finance-based finance" in traditional finance, and opening another window for modern economic development, with both financial explosiveness and industrial durability. So supply chain finance is a good thing, I hope you can have it.
One thing is clear. Everyone wants money. Why do some people make money and others don't? This is the first question I will ask our entrepreneurs in class. What does your company do? Everyone wants to make money, but the question is where does the money come from?
In fact, the starting point of an enterprise should not just rush money, but create value for customers. The more people who don't want money, the more money they earn in the end. What do you mean by people who don't want money? Lei Jun will tell you now that you want to do this thing. First, you like it. Second, if you think it is good for users, you should do it quickly, regardless of where the money comes from. When you meet the needs of users and do things well, money will naturally come. This is called creating value first, meeting demand first, and then making money.
Now let's talk about supply chain finance. First of all, what is the concept of supply chain? A hundred years ago or earlier, the development of supply chain was vertical integration, that is to say, if you can do it yourself, try to do it yourself. For example, in the past, Ford made cars, then built its own steel and mines, and built a 4S shop. The whole supply chain is made by one company, making the most money.
But you will find that there are very few such enterprises now. What we are concerned about now is light asset company-brand building and supply chain management. You will find that large enterprises focus on core competencies such as brand design, market customer relationship and innovative technology, while manufacturing and circulation functions can be outsourced as much as possible, thus creating a supply chain format. In this case, many small and medium-sized enterprises have grown up around them and become their suppliers, distributors and retailers, participating in this value chain and industrial chain together.
Core enterprises are called brands/manufacturers by us. This manufacturer may not manufacture itself, but mainly make brands, be responsible for quality, or make final assembly. The consequence of this is the improvement of efficiency. Because small and medium-sized enterprises can give full play to their own expertise, and because they are small, their management costs are lower and their efficiency is higher, they can reduce more costs than core enterprises do by themselves. However, there is also a communication/transaction cost. Once there are so many upstream enterprises, how can downstream enterprises coordinate with them? This transaction coordination cost becomes very important. There is also the cost of capital in the transaction cost. In China, you will find that the cost of capital accounts for a considerable part of the cost of small and medium-sized suppliers.
Capital has a cost, and even if it is willing to pay interest, it is not easy for SMEs to borrow money. Without capital, enterprises cannot develop at all. Borrowing money requires credit or guarantee. Small and medium-sized enterprises lack these, and banks don't believe their financial statements. Now it has become a very interesting thing. Core enterprises have credit and are not short of money. It is easy for them to borrow money, but their suppliers and distributors can't borrow money.
Let's talk about the supply chain. What is the most critical in the supply chain? This is called supply chain management. The supply chain is the whole chain. In other words, it is not a core enterprise that does things well by itself, but both upstream and downstream do things well, so that the whole industrial chain can be efficient, with the lowest cost, the fastest speed and the best quality, and the core enterprises can win in the competition. This can't be done at once. Small and medium enterprises are not strong. Can you be strong?
For example, there are many excellent electrical appliance manufacturers in China, but have you ever heard of any electrical appliance manufacturer whose suppliers are excellent? This is the gap between our China manufacturing and Japanese manufacturing and Korean manufacturing. Electrical appliance manufacturers say that I attach great importance to quality, but your suppliers are small, have poor ability, can't innovate and can't guarantee quality. Finally, the parts are in your refrigerator and washing machine. Will your washing machine and refrigerator be of high quality? Therefore, if the ecological environment of small and medium-sized enterprises or suppliers is very bad, there is a gap in funds and there is no local financing, then nothing can be done.
So let's look at the whole thing from the perspective of supply chain. Core enterprises will care about their own interests before they care about the interests of others. What's it thinking? Return on assets. Dupont company >>
What is supply chain finance? What are the modes of supply chain finance?
The essence of supply chain finance is to provide financial services for the last link of supply chain. Of course, there must be a core enterprise in these supply chains. Around this core enterprise, from raw material procurement, manufacturers, distributors, retailers to end users, it provides financial financing services for N enterprises in the chain in all directions, which is also commonly known as "1+N"
To give a simple example, the joining companies have a good reputation in the industry, the upstream and downstream relations are stable, and the annual purchase and shipment are relatively stable. Then a company can guarantee the upstream and downstream and apply for financing services from the bank.
At present, supply chain finance includes three modes: accounts receivable financing mode based on supply chain finance, confirmed warehouse financing mode and financing warehouse financing mode.
Accounts receivable mode refers to the financing business provided by an enterprise to the seller in order to obtain liquidity, based on the accounts receivable generated by the real trade contract signed by the buyer and the seller, and taking the accounts receivable under the contract as the first repayment source.
This is also the most used mode at present.