On SME Financing in China from Perspective of Supply Chain Finance

Abstract

This paper studies the financing of small and medium-sized enterprises in China from the perspective of supply chain finance. Firstly, this paper analyzes the source of financing difficulties and the existing solutions and believes information asymmetry is the key to the financing problem of SME. The supply chain finance can reduce the information asymmetry between banks and enterprises by means of the guarantee of the core enterprises to the small and medium-sized enterprises on the supply chain, which is helpful to alleviate the financing difficulty of the small and medium-sized enterprises. Secondly, this paper analyzes the challenges and opportunities of bank-oriented supply chain finance, considering the information control means of supply chain finance mode. Finally, the orientation and direction of SME participating in supply chain finance are put forward according to the status of SME in supply chain.