Financing strategy of SMEs based on the shortage of environmental protection funds

Abstract

With the development of society, environmental protection issues have received increasing attention. The increase in environmental protection requirements has greatly affected small and medium-sized enterprises（SMEs）. Due to the poor credit status and imperfect systems of SMEs, financing is difficult and expensive, which makes environmental protection funds insufficient, leading to outstanding environmental protection problems. In the supply chain, in order to maintain the stability of the supply chain, the core enterprises will help SMEs to alleviate the funding difficulties. This article starts from the supply chain financing of SMEs, explores the specific ways that core enterprises can help SMEs in supply chain financing, and analyses the feasibility of financing methods. Through analysis and demonstration, it is found that core enterprises can help SMEs with supply chain financing through prepayments, help small and medium-sized suppliers solve the problem of insufficient environmental protection funds, and core enterprises can obtain benefits from it.