Abstract
Due to limited guarantees, it is difficult for small and medium-sized enterprises (SMEs) to obtain loans from banks. Supply chain accounts-receivable pledge financing (SCARPF) can help in overcoming those financing difficulties. This study developed an evolutionary game model of banks, core enterprises and SMEs in SCARPF, analyzed the evolution path and evolution rules of the model, and performed a numerical simulation. The results indicated that the result of the evolutionary game depends on the initial values of the variables. When certain conditions are met, the system will evolve to (lending, keep the contract). The higher the return rate during either normal production of SMEs, the loan interest rate or supply chain punishment, the more likely it is that banks will lend money and SMEs will keep the contract. However, the bank will only be likely to lend money, enabling SMEs to keep the contract, when the probability of core enterprises and SMEs engaging in joint loan fraud—or the proportion of the benefits that SMEs share when engaging in joint loan fraud—is reduced. The results of this study provide insights for banks, core enterprises, and SMEs in supply chain financing decisions, which is conducive to solving the financing difficulties of SMEs.
Highlights
With the impact of the Coronavirus pandemic in 2019 (COVID-19), small and mediumsized enterprises (SMEs) are facing serious problems such as tight cash flow, slow progress in resuming production and work, and a sharp decline in foreign trade orders
This study focused on the supply chain in which small and medium-sized enterprises (SMEs) provide parts for core enterprises
The SME trades with the core enterprise to generate accounts receivable; The SME in the upstream of the supply chain submits an application for Supply chain accounts-receivable pledge financing (SCARPF) to the bank; After receiving the SME financing application, the bank confirms the creditor’s rights to these accounts receivable to the downstream core enterprise; After the creditor’s rights to the core enterprise’s bill are confirmed, the bank and the SME will sign an agreement on financing matters to lend to SMEs
Summary
With the impact of the Coronavirus pandemic in 2019 (COVID-19), small and mediumsized enterprises (SMEs) are facing serious problems such as tight cash flow, slow progress in resuming production and work, and a sharp decline in foreign trade orders. They are in urgent need of financing assistance. It is difficult for SMEs to obtain loans from banks due to their own development restrictions [1,2,3]. We strive to provide suggestions for SMEs to obtain more financing resources, and provide guidance for other participants in the supply chain.
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