Abstract
Supply chain finance has broken through traditional credit modes and advanced rapidly as a creative financial business discipline. Core enterprises have played a critical role in the credit enhancement of supply chain finance. Through the analysis of core enterprise credit risks in supply chain finance, by means of a ‘fuzzy analytical hierarchy process’ (FAHP), the paper constructs a supply chain financial credit risk evaluation system, making quantitative measurements and evaluation of core enterprise credit risk. This enables enterprises to take measures to control credit risk, thereby promoting the healthy development of supply chain finance. The examination of core enterprise supply chains suggests that a unified information file should be collected based on the core enterprise, including the operating conditions, asset status, industry status, credit record, effective information to the database, collecting related data upstream and downstream of the archives around the core enterprise, developing a data information system, electronic data information, and updating the database accurately using the latest information that might be available. Moreover, supply chain finance and modern information technology should be integrated to establish the sharing of information resources and realize the exchange of information flows, capital flows, and logistics between banks. This should reduce a variety of risks and improve the efficiency and effectiveness of supply chain finance.
Highlights
Small and medium-sized enterprises (SMEs) have generally played the most significant role in the development of the national and provincial economies in China
There are measures that are intended to alleviate the financial constraints of SMEs, such as leasing and factoring that are helpful in facilitating access to finance in the absence of well-developed financial institutions
The Wuhan Iron and Steel Group has applied to various banks for financial loans by means of the receivables documents in the financing process
Summary
Small and medium-sized enterprises (SMEs) have generally played the most significant role in the development of the national and provincial economies in China. The Wuhan Iron and Steel Group is affiliated to the state-owned SASAC important backbone enterprises, has a good credit rating, and substantial financial strength. It is among the core enterprises in the supply chain finance. The Wuhan Iron and Steel Group is in the production stage of the three stages of product supply, production, and sales. The Wuhan Iron and Steel Group has applied to various banks for financial loans by means of the receivables documents in the financing process. They select the financing mode of prepayment to purchase and apply for loans based on sales contracts
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