Credit Control Research Articles

REVIEW OF FUNDING PROCEDURES ON PT FIFGROUP CILEGON BRANCH

Purpose - In the world of trade in goods and services, the types of transactions that are commonly carried out are payment by cash or credit. PT. Federal International Finance is one of the actors in the business world engaged in business Honda motorcycle credit sales financing. Total financing is dominated by credit. This is done primarily in addition to attracting as many buyers as possible also to make it easier for consumers to manage cash Design/methodology/approach - Financing credit sales of Honda motorcycles to PT. FIFGROUP uses a system and credit financing procedures. The purpose of this study is (1) to analyze the effectiveness of procedures for providing credit funds to customers at PT. FIFGROUP Cilegon Branch (2) To analyze the customer's bad credit control system PT. FIFGROUP Celeron Branch Finding - Observations were made on the results of this study shows In analyzing the feasibility of granting credit to consumers, besides using 5C analysis the company also uses five parameters feasibility in analyzing whether or not the prospective debtor is financed credit, this proves that the company has carried out the process credit approval in accordance with procedures established by the company. Appropriate division of tasks and segregation of functions is control internal company which is one way to minimize risk uncollectible accounts receivable. Keywords: procedures, assessment procedures Automotive.

An Assessment of Kenyan Diplomatic Strategies in Managing Its Kenya-Somalia Maritime Border Disputes

In LDCs like Ethiopia, one of the major macroeconomic problems is the absence of effective monetary policy. The money demand function play a major role in macroeconomic analysis, especially in selecting appropriate monetary policy actions. The objective of monetary policy in the least developing countries (LDCs) is usually related to money and credit control, price stabilization and economic growth. Many LDCs considered, price stability as the most important objective of monetary polices and it is important to testing the stability of parameter of money demand function indicate the effectiveness of the conduct of monetary policy. The research to be conducted therefore is to investigate the determinants of money demand function. Based on the data, which could be found an error correction model (ECM) was applied to estimate the money demand function in Ethiopia. From the study it is found that, money demand is positively related with real GDP and it is negatively related with expected inflation. The coefficient of real effective exchange rate is positive or negative depending on the magnitude of the appreciation and depreciation of local currency. Thus the studies calls for appropriate formulation and implementation of sound monetary policy capable of bringing stability in the coomy coupled with sustainable growth. Keywords : money demand , economic growth , error correction model DOI : 10.7176/DCS/9-1-02

Green monetary policy to combat climate change: Theory and evidence of selective credit control

Recognizing climate change as a formidable threat to global economic stability, the study underscores the inadequacies of existing fiscal tools, such as carbon taxes and carbon trading, in effectively mitigating carbon emissions and explores the potential impact of climate-related uncertainties on the global financial and monetary system. The paper delineates the necessity of integrating environmental goals into monetary policy frameworks, proposing a Green Monetary Policy (GMP) Framework that explicitly incorporates emission reduction targets into traditional monetary instruments to confront the growing challenges of climate change. Innovating an economic model for the GMP, the paper presents nuanced insights into the potential role of central banks in addressing climate change. The consequent mathematical calibration and findings advocate for a strategic shift in credit allocation from high carbon-intensive activities to low carbon-emitting industries using selective credit control instruments by central banks to combat climate change. Moreover, using Panel VAR and Impulse Response Functions (IRF), the study examines the period spanning 2004–2020 across diverse economies—Brazil, China, the EU, India, and the US. The results suggest that central banks can achieve the dual objectives of maintaining price stability and sustainability by exerting effective control over emissions. In essence, this research lays the foundation for a comprehensive understanding of alternative economic policy tools and strategies available to policymakers in navigating the intricate landscape of climate-related economic challenges.

Kiểm soát tín dụng góp phần đảm bảo an toàn vĩ mô Thực tiễn tại một số quốc gia và Việt nam

In the world, central banks have utilized credit control measures to enhance macroprudential, monetary, and other macro policies to achieve economic goals. Since 2011, the State Bank of Vietnam has adopted credit control as an administrative measure, alongside its more conventional monetary policy tools (refinancing, interest rates, exchange rates, reserves requirements, and open market operations) to curb inflation at its annual target level. In its function, credit control (setting the credit growth targets) acts as an immediate target which assists the SBV in achieving its monetary policy targets and ensuring macroprudential and stability of the banking system. This Article discerns some stylized facts of Vietnam’s credit growth data and its time-varying co-volatility relationships with economic growth and inflation. Combined with a meta-analysis of some studies and reviews of monetary policy through the lens of both interest rate-based monetary policy as well as one monetary aggregate to qualitatively evaluate and analyze the management of credit growth instruments of the SBV from 2011 to the present. The Article concludes with strategic proposals for the use of this measure in the coming time.

Funding Valuation to Support Disaggregation of Value Chain in HLMC Hospital Yogyakarta

The economic cycle always goes through boom-and-bust cycles. When the economy slows down, the government will increase the money circulation; when the economy is heating up, the government will slow down the money circulation. In this regard, interest rates, credit control, currency policies, and so on play a role. The COVID-19 pandemic era accelerated the economic cycle relatively quickly. During the pandemic, the government provided massive stimuli to the economy, and during the recovery phase, the government tightened financial policies again. Such actions have made the global investment market experience tumultuous twists and turns. Corporate funding, which was relatively easier before, has become difficult. Companies once again have to adjust their business models to their original goals: value creation, generating profit and margin, and ultimately producing positive cash flow. Adapting to the changing demands of the business environment, shifting from a “growth at all costs” mindset to prioritizing “more sustainable profit,” companies must acknowledge that the essence of business activities is to generate real cash flow and tangible profits. This study compares different approaches to valuing companies: the Discounted Cash Flow (DCF), Revenue Multiple, and PE Multiples. DCF takes a valuation approach based on projections of the company’s future cash flows and real profits operationally, whereas revenue and PE multiples offer simpler valuation methods by emphasizing relative comparisons within similar industries. This simplification aids investors in evaluating potential profits when executing exit strategies. Therefore, the valuation method using DCF (Discounted Cash Flow) is not as aggressive as the valuation method using exit multiples, such as P/E (Price/Earnings) Multiple, let alone Revenue Multiple. This research serves as a benchmark for the funding valuation method to support the disaggregation outlined by HLMC Hospital Yogyakarta in the field of skin, aesthetic, and wellness centers.

Influence of Loan Loss Provisioning Ratio Prudential Regulations on Financial Performance of Deposit Taking Savings and Credit Cooperatives in Kenya

The purpose of this study was to examine the effect of loan loss provisioning ratio regulations on the financial performance of deposit taking Savings and Credit Cooperatives (SACCOs) in Kenya. The study was based on the modern portfolio theory and used a positivist philosophical approach. A mixed study strategy was employed that incorporated both primary and secondary data sources spanning the years 2014 to 2021. The study population consisted of 175 deposit-taking SACCOs (DT-SACCOs) and stratified random sampling was used to choose 105 DT-SACCOs that are regulated by the SACCO Societies Regulatory Authority (SASRA). Additionally, purposive sampling was used to select the chief executive officers (CEOs) of the selected DT-SACCOs. The primary data for this study was obtained by the administration of questionnaires to CEOs. The secondary data was gathered from published financial reports of the 105 DT-SACCOs. The gathered data was analyzed using both descriptive and inferential statistics. The results of the study indicated that the loan provisioning ratio had a significant and negative effect on the financial performance of DT-SACCOs in Kenya (β = -0.502, t = -5.987, p < 0.05). The study recommends to management of DT-SACCOs to always adhere to prudential guidelines on loan loss provisioning ratio, and implement credit control mechanisms like performing evaluations of credit policy and ensuring that there are skilled personnel authorizing and approving loans. The study also recommends to leaders in DT-SACCOs to adopt and execute effective strategies to minimize non-performing loans engaging in effective and detailed customer profiling.

The Impact of Credit Bureau on the Non-Performing Loans Situation in the Nigerian Banking Landscape

Lending in the Nigerian banking space has continued to evolve over the years. As changes have occurred in the banking system, so has the level of non-performing loans evolved.
 While the growth in non-performing loans has been as a result of various unwholesome practices in the industry, others have been as a result of global economic downturn such as the United States housing bubble in 2007 - 2008 and then the fall in demand and price of crude oil in 2016, caused another round of financial crisis.
 The Nigerian banking landscape has been bedeviled with lots of non-performing loan challenges over the years. The disbursement of credit facilities in the form of advances, loans, and overdrafts by banks to corporate bodies, individuals, private and public entities occupies a critical and strategic position in the economic growth of a nation. To perform this function, Banks muster funds from the nation’s surplus economic unit of the economy.
 This thesis focuses on how the establishment of credit bureau has impacted the growth or otherwise of non-performing loans, lending practices and policies of banks in Nigeria. 
 Collected and analyzed data through primary and secondary sources. Questionnaires were administered to bank officials and the three major credit bureau companies. However, as is the case with questionnaires distributed, some were returned unanswered due to people being reluctant to furnish detailed replies. 
 This study sets out the theoretical background, rationalization and objectives of the study. A lot of literature reviews on lending policies and reviews of credit control in the banking industry were undertaken, the need for efficient loan administration and the causes of non-performing loans in the banking industry. A summary of the findings, recommended solution and conclusion to the research problems is presented. The outcome revealed that deficient credit analysis, as well as any negative economic impact on the country, has always played a major role in the growth of non-performing loans.
 This study examined the reasons for non-performing loans in the Nigerian banking industry and the impact the credit bureau has played. The ex-post facto research design was adopted during the course of the study. Data from the Central Bank of Nigeria Statistical Bulletin and Financial Statement of banks for the period 1994-2019 were collated for the time series analysis. The five hypotheses stated were tested using the Ordinary least square regression. Non-performing loans measured by the natural logarithm of aggregate non-performing loans of banks represented the dependent variable, while gross domestic product, inflation rate, total loans and advances, total assets and bank’s lending rate were adopted as the independent variables for the five hypotheses of the study. Macroeconomic variables such as exchange rate, and interest rate were also included as control variables. 
 The result derived from this study showed that GDP had a negative effect on non-performing loans; Bank lending rate, Inflation rate and total loans and advances all had a positive effect on non-performing loans but was insignificant; total Assets exerted a negative effect on non-performing loans and was statistically significant at the 0.05 level.

Credit Portfolio Management in Nepalese Microfinance Institutions (MFIs): A Shifting Guide to Credit Risk Management

This paper attempts to provide a first step toward understanding the role of credit portfolio management in Nepalese microfinance institutions (MFIs) and overcome those problems associated with credit risk management. The credit portfolio management (CPM) has become most crucial functions of the Nepalese MFIs for sound loan portfolio quality. This study is based on descriptive research design. Several findings are made through the review of the literature that is parallel to achieving the objectives of the study. MFIs are financial intermediaries ("banks") that have a direct impact on economic and social transformation, such as job creation, income generation, social change, and poverty alleviation via financial and non-financial activities. The findings show that a credit appraisal system, scientific interest rate, credit monitoring, loan portfolio diversification system, capital optimization, risk framework development, regulatory management, credit control, credit advisory, and credit research, have reduced credit risk and ensured high-performing loans and financial sustainability. The study recommends that MFI’s portfolio management strategies focus more on the internal causes of delinquency which they have more control over and seek practical and achievable solutions to reimbursement delinquency problems. The study's findings will be useful to BFIs, institutional lenders, microfinance experts, regulators, economists, policymakers, and institutional credit rating agencies. The result reveals that portfolio diversification has a significant impact on credit portfolio management in Nepalese MFIs.

Konsep Wrddhi Grhiyad Dalam Pengendalian Kredit (Studi Kasus Pada LPD Desa Adat Subamia, Kecamatan Tabanan, Provinsi Bali)

This study aims to determine the application of the wrddhi grhiyad concept that can be used as a work base by the Subamian Traditional Village LPD in credit control, and the effectiveness of the application of the wrddhi grhiyad concept as the value of Hindu local wisdom in credit control at the Subamian Traditional Village LPD. Sources of data used are primary and secondary data. Primary data was obtained from interviews, while secondary data was obtained from the profile of the Subamian Traditional Village LPD, the Subamian Traditional Village LPD credit realization report, the Subamian Traditional Village LPD profit and loss report, and an overview of the application of the wrddhi grhiyad concept in credit control at the Subamian Traditional Village LPD. The method of data collection was done through observation, interviews, documentation, and literature study. The analytical method used is descriptive qualitative method. The results of this study indicate that the application of the concept of wrddhi grhiyad as the value of Hindu local wisdom can be used as a working basis in credit control, because it is able to suppress and prevent the risk of bad credit. The application of the wrddhi grhiyad concept as the value of Hindu local wisdom in controlling credit is effectively used because it is in line with the purpose of the establishment of the the Subamian Traditional Village LPD, namely the welfare of the community and the LPD without reducing the value of Hindu local wisdom.

Credit Card Default Prediction based on Machine Learning Techniques

In recent years, with the development of society and economy, credit cards have been popularized due to their low interest rate and easy payment. However, with the advent of the epidemic era, the unemployment rate has increased, making the probability of credit card defaults rising. The prediction of credit card default helps banks and financial institutions balance the risk and economic interests, contributes to the stable and healthy development of the financial industry, and plays an important role in bank credit control. Therefore, this paper addresses the credit card default prediction problem by using Random forest, Decision tree, LightGBM, XGBoost, Logistic regression, and Adaboost models to make predictions and compare the results. The outcomes demonstrate that LightGBM algorithm has the most outstanding prediction score, and its AUC value can reach 0.78 and recall rate reaches 0.95.

Analyzing the Measures of Credit Risk on Financial Corporation and It’s Impact on Profitability

Non-Banking Financial Corporations are playing a major role in the financial market with respect to providing loan facilities to the business. It is an integral the financial system of any country. It leads to improvise the employment opportunities and economic development. The NBFCs are becomes an important stimulant of credit creation and credit control tool of central banks of the respective countries. The dispersal of loans and advances provided to individuals and the companies are contained the credit risk for the NBFCs. Gumrarathi (2010) study reveals that most of the non-banking financial corporation’s business operations are holding a high credit risk in lending. It shows that most of the lending transacted with small and medium level organizations, which is having a probability of high-risk class. The NBFCs are already encountering various issues such as high fund cost, poor industrial development, and huge competition among the NBFCs and also with commercial banks. The non-performing assets are another kind of big issue in reducing the profitability. In this juncture, the management of this credit risk is one of the prominent challenges of the Non-Banking Financial Corporations. Because the credit risk is the direct risk and their whole business life survival is based on the money which is invested on loans. The credit risk measures are coming into existence to mitigate the losses arise through the non-performing assets (NPA). The present study aims to analyze the various strategies adopted by the selected NBFCs. It is attempted to find out the credit risk measurement and controls systems of NBFCs. The study also analyzes the relationship between the credit risk measures of corporations and its profitability. Present study is adopted the descriptive research method to carry out the study. It is purely based on the secondary data sources such as financial statements, published data of NBFCs and data published in journals. The collected data is analyzed by applying appropriate econometric tools such as stationarity, cointegration, and granger causality to find the relationship among the variables. Based on the data analysis, the results are interpreted and conclusions are made. The present study provides the strong evidences of strong relationship among the credit risk management, control of non-performing assets and the profitability of the NBFCs. 

Analysis of Credit Management Techniques on the Financial Performance of Logistics Firms in Mombasa County Kenya

Financial performance depicts survival rate of any business enterprise. This rate for most firms internationally have been at a declining rate of 70% and 80% mostly in the sub- Saharan Africa. The Logistic firms in Kenya Mombasa County have been striving to survive reasons among other factors the deteriorating credit management techniques. The adverse performance is evidenced by the collapse and the closure of a number of logistics firms. The purpose of this research was to analyze the various credit management techniques and their influence on financial performance of logistics companies in Mombasa County. The specific objectives of the study were to analyze effect of appraisal process, credit risk control, collection policy and terms of credit on financial performance. The study was based on the following theories Agency Theory, Credit Risk Theory, Tax Theory of Credit, Portfolio Theory and Asymmetric information Theory to ascertain if their presumptions explains best the relationship between credit management techniques on financial performance of logistic firms. The study applied a descriptive research design and will target a population of 248 employees of logistics firms in Mombasa County registered under KIFWA and the sample size of 160 obtained through stratified sampling. The collection of data was done through primary data collection methods. Primary data was amassed through the administration of questionnaires to senior managers and officers in the finance department. Analysis of data was done through Statistical Packages for Social science (SPSS) representing descriptive statistics such as percentages, measures of central tendencies, variation measures and frequencies distribution. The interpretation was based on descriptive statistics and the measures of dispersion as well as inferential statistics were used Pilot test was carried out to ensure the accuracy and validity of the research tools Multi linear regression model was used to analyze effect of credit management techniques on financial performance. The research sought to analyze whether client appraisal process credit risk control collection policy and terms of credit has significant effects on financial performance of logistics firms in Mombasa County. The study further sought recommendation on how a robust credit control mechanism sound credit policies acceptable terms of credit and proper client appraisal process can be applied in credit management to enhance financial performance of logistics firms in Mombasa County. The beneficiaries of the study were the Logistics firms’ managers, Policy makers financial managers scholars and academicians.

Financial reforms and innovation: A micro–macro perspective

We develop a horizontal R&D growth model to investigate the different channels through which financial reforms affect R&D investment and patent activity. First, a “micro” reform that abolishes barriers-to-entry in the banking sector leads to a decrease in lending rates which stimulates R&D investment and growth. Second, a “macro” reform that removes restrictions on banks’ reserves and credit controls. While this reform increases liquidity, it also increases the risk of default, potentially raising the cost of borrowing. This we dub the “reserves paradox” – this makes banks offset the rise in the default rate with a higher spread between loans and deposit rates. Thus our model suggests that whilst micro reforms boost innovation, macro reforms may appear negative. We find empirical support for these propositions using a sample of 21 OECD countries.

The Operational Aspects of Monetary Policy in Controlling the Demand and Supply of Money

Purpose: The primary aim of this research is to examine how monetary policy operationally manages the demand and supply of money within Bangladesh’s economy. Methodology: This analysis is based on structured interviews conducted with 207 respondents from Bangladesh Bank and 19 listed private conventional commercial banks. The data were interpreted using percentages, descriptive statistics, and varimax rotated factor analysis. Findings: Based on adjusted mean scores, the research identified and ranked 14 factors influencing Bangladesh's control of money supply and demand. The most impactful tools identified were interest rate-related instruments, reserve instruments, open market operations, and credit control tools, as determined by varimax rotated factor analysis. The rankings accurately represent the current state of the money market in Bangladesh. Practical Implications: The study fills a gap in the literature and tests existing theories on monetary policy in Bangladesh. The findings are valuable for regulators, commercial banks, academics, and policymakers, providing insights that could enhance the effectiveness and goal orientation of central bank policies. Research Limitations: The small sample size of 207 respondents limits the study's scope. Additionally, restricted access to previous studies and data limitations posed challenges. The research focused solely on Bangladesh Bank and listed private commercial banks, excluding non-bank financial institutions (NBFIs) and the capital market.

Analisis Pengaruh Discount Rate, Cash Ratio, dan Selective Credit Control terhadap Perkembangan Aset Modal Ventura Syariah Periode 2017-2021

The purpose of this study is to determine the impact of the discount rate, cash ratio, and selective credit control simultaneously and each variable on the development of Islamic venture capital assets. This study uses an associative approach that asks the relationship between two or more variables. The research results confirm that; (1) The Discount Rate variable has no effect on the development of Islamic venture capital assets, as can be seen from the statistical results showing the value of α (0.136 <0.05) while the calculated value > t table (5.093 > 1.677). (2) The Cash Ratio variable has no effect on the development of Islamic venture capital assets, as can be seen from the statistical results showing the value of α (0.082 <0.05) while the value of t count > t table (2.952 > 1.677). (3) The Selective Credit Control variable has a significant influence on the development of Islamic venture capital assets, as seen from the statistical results showing the value of α (0.000 <0.05) while the calculated value > t table (3.546 > 1.677). (4) The results of the regression analysis found that the Discount Rate, Cash Ratio and Selective Credit Control variables simultaneously influence the development of Islamic venture capital assets by 93.9% while the remaining 6.1% is explained by other variables outside the estimation model.

Financial reforms and capital accumulation in developing economies: New data and evidence

This study uses newly constructed data on structural reforms and private and public capital stock to assess the effects of financial reforms on capital formation in developing economies. We find that while both domestic and external financial reforms are important determinants of capital formation, the former is more influential in middle-income countries (MICs) and the latter in low-income countries (LICs). For LICs, external financial reforms work mostly through attracting FDI. For MICs, within domestic financial reforms, what matters most are measures related to strengthening banking supervision and reducing credit controls. These results are driven by capital formation in the private sector. In addition, these effects are nonlinear, and it is important for a country's policy when it comes to the sequence of implementing domestic and external financial reforms. Given the importance of public investment in decarbonization, this study further discusses the potential impacts of financial reforms on climate change and carbon inequality.

Analisis Sistem Pengendalian Internal Pada Pemberian Kredit Di Lembaga Perkreditan Desa (LPD) Desa Adat Kesiman Di Masa Pandemi Covid-19

LPD is a village-owned business entity that carries out business activities in the village environment and for village cramps. LPD as one of the village business containers that carry out its function in form of business towards the improvement of standard to live villagecramps and in its activities supports the development of many villages. This research aims to analyze the internal control system on lending in LPD Desa Adat Kesiman during the covid-19 pandemic. The methods used in this study are qualitative methods with descriptive approaches. To obtain accurate and accountable data, the author uses several techniques in data collection, namely through interviews, observations, documentation and triangulation of sources data. The object of this research Kesiman Indigenous Village, East Denpasar Subdistrict, Denpasar City. The results showed that control, information and communication activities, and monitoring have been carried out properly, but in a control environment, especially in Credit control had experienced credit problems due to many customers who did not complete their credit. Then in the risk assessment section of the application of the 5C system in lending has not been 100% can be implemented because the LPD applies the family principle

Effectiveness of Credit Management Policies as a Treasury Management Tool in Enhancing Financial Performance: The Case of Colcom Pvt Ltd. 2015-2019

This study evaluated the viability of credit arrangement policies in enhancing financial performance of firms. The purpose of the study was to evaluate amongst other things, the effects of money receipting framework on monetary execution and the effects of enthusiasm on past due records. A logical exploration configuration was utilized in this investigation just as a multivariate relapse investigation was directed to decide the coefficients of the factors. The study adopted a quantitative research methodology and data was collected using a questionnaire. Judgemental inspecting method was utilized on a sample size of 11 representatives out of a whole populace of 20 workers. In addition, two top administration representatives were met for information sharing. The results indicated that the current credit administration strategies of Colcom Ltd were not completely executed and furthermore, they positively affected financial execution. The study concluded that credit arrangements had the best effect on budgetary execution, followed by some factors such as the economic instability and political interventions. This study recommends the full implementation of the current credit management policies, regular training of credit officers and to practice scientific credit control (application of risk evaluation techniques). This would improve their efficiency in credit analysis and customer analysis management to secure as much as possible their assets, and reduce the high chances of turning into credit losses and their negative effects on good financial performance.

A Study of the Management of Student Records in Academic Registrars’ Offices in Kenyan Universities

This study assessed the management of student records in academic registrars’ offices in Kenyan universities. A descriptive survey design was adopted in carrying out the study. The study targeted 49 chartered private and public universities in Kenya. The researcher classified the universities into private and public, and further, into two sets; those in the western region and eastern region of Kenya. The researcher then purposively chose in each region the youngest and the oldest public universities and similarly private universities. Questionnaire was used in the collection of data. The findings show that were clear ways of storing students’ records. However, the adoption of electronic records management was fifty-fifty. Though most of the universities had some form of electronic document use, some had not fully embraced electronic records management. The major challenges encountered were information breakdown from the registry, problems with credit control among others. The following recommendations were made based on the findings of this study; academic registrar’s office need to have a clear policy explaining the “who, where, when and what” of records management; there is need to avail adequate finance for record management processes starting from record creation, storage, communication and retrieval as well as disposal; right equipment such as cabinets, safes, locks, fire-extinguishers, trolleys, etc. should be procured; the university should develop and constantly upgrade recommended record management systems with extensive server capabilities to meet the needs of all students and other users; and members of staff should also be periodically trained to strengthen their capacity to handle the changing demands of record management as most of it migrates online.

Study on Transmission Path and Prevention of Supply Chain Financial Risk Based on DEMATEL - AISM Model

Supply chain finance promotes the effective operation of all aspects of the supply chain and greatly promotes the development of the modern social economy. But because of its complexity, supply chain finance faces many risks, so it is vital to study and prevent supply chain finance risks. Aiming supply chain financial risks, this paper uses DEMATEL-AISM (Decision-making Laboratory Analysis-Confrontational Interpretation Structure Model) to analyze various factors affecting the development of supply chain finance and identify its transmission path. It is proposed to strengthen legal control, credit control, proficiency, supply chain management and supply chain operations, and find out and understand the things and links that are highly related to supply chain finance.; create a stable supply chain financial market environment and ensure market efficiency and other preventive measures. In this paper, the DEMATEL-AIM method is innovatively applied to identify and analyze supply chain financial risks, and the complex supply chain financial system is systematically analyzed. The relationship between indicators and the structure of the index system is found, which is helpful to identify the influencing factors of supply chain financial risks at all levels and their internal transmission mechanism. The preventive measures of supply chain financial risks are put forward, which provides ideas for effective prevention and treatment of supply chain financial risks and promotes the sustainable development of supply chain finance.