Inventory Pledge Financing Research Articles

Risk Control Strategies for Inventory Pledge Financing on Cross-border E-commerce Platforms Empowered by the Digital Economy

Risk Control Strategies for Inventory Pledge Financing on Cross-border E-commerce Platforms Empowered by the Digital Economy

Inventory pledge financing decisions based on a permissioned blockchain by controlling fraudulent risk

Inventory pledge financing (IPF) is a crucial financing way for small and medium-sized enterprise (SMEs). But banks are reluctant to finance SMEs due to fraudulent risk in practice. This paper discusses the application of blockchain in IPF, particularly its impact on mitigating fraud risks. Utilizing game theory models, we illustrate how the finance and operation decisions of participants, along with supply chain efficiency, are influenced by the introduction of blockchain. Meanwhile, equilibrium outcomes are analysed and numerical study is given. Our analysis reveals that under certain conditions, blockchain integration can lead to reduced loan interest rates, lower wholesale prices, increased order quantities by buyers, and enhanced supply chain efficiency. Lastly, we develop a protocol to demonstrate the transfer of digital warehouse receipt on a permissioned blockchain to avoid fraudulent risk. This study provides a theoretical foundation, and a guidance for decisions-making in blockchain-enabled IPF schme.

Mitigating information asymmetry in inventory pledge financing through the Internet of things and blockchain

PurposeRisks resulted from asymmetric information have become crucial barriers for commercial banks to implement supply chain finance (SCF) – mainly the inventory pledge financing (IPF). At the same time, online financial service providers (OFSPs) are emerging as strong competitors in the SCF market. As a result, commercial banks need to update their traditional SCF business models and alleviate their over-dependence on OFSPs.Design/methodology/approachThe authors employ a multi-case-study method to investigate how the Internet of things (IoT) and blockchain technologies can be jointly leveraged to mitigate SCF risks. In-depth interviews were conducted to depict the business models and their novel ecosystem to reinforce traditional banks' ability in SCF services.FindingsFrom the perspective of information asymmetry, the authors categorize IPF risks into three groups based on the principal-agent theory: collateral, warehousing and liquidity risk. The findings suggest that IoT can primarily improve traditional banks' information acquisition ability, and blockchain can facilitate credible information transformation, enabling banks to acquire knowledge from collaterals. Besides, the e-platform in the new architecture increases banks' involvement in the supply chain and builds a fair network to curtail warehousing risks. The employment of smart contracts and collaborative mechanism ensure process and outcome control in mitigating liquidity risks.Originality/valueThe research contributes to the literature by confirming the role of emerging technologies in reducing information asymmetry risks. Besides, the findings provide valuable insights for practitioners to promote effective practices and approaches in IPF.

Analysis of Financing Risk and Innovation Motivation Mechanism of Financial Service Industry Based on Internet of Things

It is of practical significance to introduce the Internet of Things technology into the financial service industry and find the driving factors and mechanisms of financial innovation to accelerate the promotion of financial innovation. This article starts from the perspective of banks and other supply chain financial institutions, takes mainstream trading products in the commodity trading market as the research object, uses the LA-VAR model, and fully considers the market price fluctuations and liquidity factors of supply chain financial inventory products. It analyzes the theoretical basis of the continuous innovation of rural financial products. On the basis of analyzing the basic characteristics and types of rural financial product innovation, we explore the connotation of sustainable innovation of rural financial products, clarify the evaluation criteria, and lay a theoretical foundation for continuous dynamic evaluation. Based on technical innovation evaluation theoretical models such as Schumpeter’s innovation model, technical specifications-technological track model, and NR relationship model market, we analyze the innovation elements of rural financial products from the external and internal aspects of innovation and discuss the relationship between the factors. The interaction mechanism of rural financial products has established a dynamic mechanism model for the continuous innovation of rural financial products. A fuzzy comprehensive evaluation was made on the continuous innovation power of financial service industry products in a certain area. Using a combination of remote surveys and on-site visits, a questionnaire survey was conducted on financial service industry institutions in a certain region’s financial system. Each survey object was required to conduct 120 × 1067 index comparisons and use the data after processing the arithmetic average Matlab carries out the objective processing of programming. The results show that the LA-VAR model with liquidity indicators can measure the liquidity risk well and more comprehensively evaluate the risk of the inventory pledge financing model. According to the index weights determined by AHP, the development of the financial service industry will be promoted in a targeted manner from the internal construction of financial institutions and the optimization of the external innovation environment.

Research on inventory pledge Financing Pledge Decision under Internet of Things Technology

Inventory pledge financing not only solves the financing difficulties of small and medium-sized enterprises, but also opens up business channels for banks. Under the random market demand, this article studies the pledge decision-making of perishable pledges in the inventory pledge business, and establishes that banks do not adopt and adopt the Internet of Things. The pledge rate decision-making model in the two technical situations aims at maximizing the profit at the end of the pledge period. The factors in the model such as the pledge rate, end-of-period income, and IoT technology coverage rate are analyzed respectively, and finally the decision-making process is verified through calculation examples. Studies have shown that, within a certain range, banks can use IoT technology to supervise pledges to obtain greater benefits. However, as the coverage of IoT technology increases, bank revenues continue to decrease, so to obtain greater benefits requires the Internet of Things technology set by the bank Invest.

Debt Financing Cost Evaluation Method of Shipping Enterprises

Li, X., 2020. Debt financing cost evaluation method of shipping enterprises. In: Yang, Y.; Mi, C.; Zhao, L., and Lam, S. (eds.), Global Topics and New Trends in Coastal Research: Port, Coastal and Ocean Engineering. Journal of Coastal Research, Special Issue No. 103, pp. 744–748. Coconut Creek (Florida), ISSN 0749-0208.Due to the traditional enterprise debt financing cost evaluation method, aiming at the problem of poor cost evaluation performance of shipping enterprises, this paper proposes a method to evaluate the debt financing cost of shipping enterprises. The paper divides the cost of debt financing strategy into two types: explicit and implicit. To identify the cost of the debt financing strategy of these shipping enterprises. According to the identification results of the debt financing strategy cost of shipping enterprises, the relevant variables of the debt financing cost of shipping enterprises are defined, so as to construct the debt financing strategy cost model of shipping enterprises. It includes the cost model of accounts receivable financing strategy, the cost model of inventory pledge financing strategy, and the cost model of prepayment financing strategy. Based on the debt financing strategy cost model of shipping enterprises, this paper constructs the debt financing cost evaluation model of shipping enterprises, so as to realize the debt financing cost evaluation of shipping enterprises. In order to prove that the cost evaluation performance of the debt financing cost evaluation method of shipping enterprises is better, the traditional evaluation method is compared with this evaluation method. The experimental results show that the cost evaluation performance of the debt financing cost evaluation method of shipping enterprises is better than the traditional method.

Analysis of risk factors in financial supply chain based on machine learning and IoT technology

The financial supply chain is affected by many factors, so an artificial intelligence model is needed to identify supply chain risk factors. This article combines the actual situation of the financial supply chain, improves the traditional machine learning algorithm, and takes the actual company as an example to build a corresponding risk factor recognition model. From the perspective of optimizing the supply chain financial model, this paper combines the functions of the Internet of Things technology and the characteristics of the supply chain financial inventory pledge financing model to design a new type of inventory pledge financing model. The new model makes up for the defects of the original model through the functions of intelligent identification, visual tracking and cloud computing big data processing of the Internet of Things technology. In addition, this study verifies the performance of the system, uses a large amount of data in Internet finance as an object, and obtains the corresponding results through mathematical statistical analysis. The research results show that the model proposed in this paper has a certain effect on the identification and analysis of financial supply chain risk factors.

Research on measurement of supply chain finance credit risk based on Internet of Things

This article first expounds the concept of supply chain finance and its credit risk, describes the hierarchical structure of the Internet of Things and its key technologies, and combines the unique functions of the Internet of Things technology and the business process of the inventory pledge financing model to design the supply chain financial model based on the Internet of Things. Then it studies the credit risk assessment under the supply chain financial model based on the Internet of Things, and uses the support vector machine algorithm and Logistic regression method to establish a credit risk measurement model considering the subject rating and debt rating. Finally, an example analysis shows that the credit risk measurement model has a high accuracy rate for determining whether small and medium-sized enterprises in the supply chain financial model based on the Internet of Things are trustworthy. This will facilitate the revision and improvement of the existing credit evaluation system and improve the accuracy of measuring the current financial risk of supply chain. This research adopts the Internet of Things to measure financial credit risk in supply chain and provides a reference for the following researches.

Construction of Supply Chain Financial Risk Management Mode Based on Internet of Things

The objective of this paper is to analyze the problems of information asymmetry, mode lag, and high operational risk between banks and enterprises in the practice of supply chain finance business. In this paper, first, the concept and function of supply chain finance were elaborated, and the theoretical basis of supply chain financial risk control was studied. The implement of principal agent, information asymmetry theory, and self-compensated trade finance theory on realizing the risk avoidance in the actual development process was analyzed. Then, the business processes of the three basic financing models of supply chain finance and the shortcomings in the operation of each model were proposed. On this basis, risk sources and influencing factors of supply chain finance were analyzed, and operational risks were emphasized. Finally, a new financing mode of inventory pledge was designed based on the special function of Internet of Things (IoT) technology and the business process of inventory financing mode. The results showed that there was a big gap in the value of risk loss caused by various types of loss events in the operation risk of supply chain finance inventory pledge financing mode; among them, the biggest losses were from external fraud. By comparing the expected loss (ES) value of inventory pledge financing mode based on the IoT with the operation risk of traditional mode, it could be found that the supply chain finance mode based on the IoT technology effectively reduced the operation risk. Therefore, the system designed in this paper has certain reference and practical significance for financial risk management.

Research and Analysis of Informatics on Credit Risk Evaluation Index System of Supply Chain Logistics

Improve the quality of inventory pledge financing and management level, help to increase the credit support for small and medium-sized science and technology enterprises. Based on the connotation and business process of inventory pledge financing, this paper analyzes the main risk sources of inventory pledge financing. On the basis of analyzing the current situation of logistics research, this paper puts forward the development mode of logistics informationization, and puts forward the strategy of integration, standardization, informationization and synergetic development around the effective implementation of logistics information management.

基于经济订货批量小微型企业库存质押研究

小微型企业要获得长足发展一方面需要考虑库存费用和订货费用，另一方面还需要考虑进货批次从而减少运输费用，因此本文致力于研究小微型企业融资方法，并且引进了在经济订货批量模型下的库存质押的概念。传统经济订货批量仅考虑资金充足情况下，企业既满足需求又使得成本最低的订货批量，并没有考虑资金不足情况下小微企业库存质押因素。库存质押是小微型企业的重要抵押贷款方式。进货的多少除了考虑尽量减少成本以外还需要考虑足够的库存获得企业运作所需要的贷款，而本文正是对这些问题做出了相应的解决方案和计算方法，目的是让小微型企业通过库存质押的融资方式提高经济效益，立于不败之地。 Small miniature enterprise should considerate two impacts: one is inventory cost and ordering cost, the other is stock batch in order to reduce transportation costs. Therefore, this research is based on the financial methods of small miniature enterprises. It also adds the concept about in-ventory pledge under the economic order quantity model. Traditional economic order quantity only considers well-funded situation, in that case, the enterprise will not only satisfy demand but also make the minimum cost of order quantity without considering the factor of small miniature enterprise inventory pledge in the insufficient funds situation. Inventory pledge is an important mortgage way for small miniature enterprise. The stock quantity relates to the consideration of adequate inventory to obtain loans needed for business operation besides the consideration to minimize costs. In this paper, we put forward the corresponding solution and the calculation method to solve these problems, and our target is to improve the economic benefit of small miniature enterprise through the inventory pledge financing way, at last make small miniature enterprise succeed in business.

Research on Financing Model of the Chinese SMEs in Supply Chain Finance

In recent years, with the quickly development of the supply chain finance, the cost of corporate finance would become an important way for enterprises to solve their financial problems. In China, the financing model of supply chain finance mainly for accounts receivable financing, inventory financing pledge financing, advances and financing. Three financing models are used in different larger companies in common. But due to the presence of their own problems, financial supply chain financing model has not been effective used in the small and medium enterprises (SMEs). This paper first describes the major financing model of supply chain finance. Moreover, some problems existing in the supply chain financing in the process of SMEs will be exposed. Finally, aiming at the problems and putting forward the method to solve the problem and to inventory pledge mode as an example, the paper puts forward an optimized scheme.

Comparative analysis of risk control in logistics and supply chain finance under different pledge fashions

Inventory pledge financing is the core mode of logistics and supply chain finance in China, which can effectively solve financial bottlenecks in supply chains and has significant scope to develop. However, it is seriously constrained by the level of risk control. Given the randomly fluctuant character of prices of pledged inventories, this paper analyses decisions of the core risk control indicator, i.e. the loan-to-value ratio in static pledge and dynamic pledge fashions. In static pledge, this paper adopts the risk estimation strategy of 'corporate and debt' and analyses the loan-to-value ratio decision of downside-risk-averse banks when distribution of inventory price at the end of the loan period follows general distribution and several special distributions. Based on the total value balance mode in dynamic pledge, this paper establishes a loan-to-value ratio decision model for downside-risk-averse banks when pledged inventory is a standard commodity. Then, this paper extensively analyses the characteristics of risk control in logistics and supply chain finance under different pledge fashions.