Supply chain finance

Provide comprehensive financial services for upstream and downstream enterprises in the supply chain.

Supply chain Jin Hongrong

It refers to the comprehensive financial services provided to upstream and downstream enterprises by taking the enterprises in the supply chain as a whole, relying on the core enterprises, taking the real consistency as the premise, adopting the self-compensating consistency financing method, and closing the capital flow or controlling the property rights by means of accounts receivable pledge and goods rights pledge.

Around the core enterprises, manage the capital flow, logistics and information flow of upstream and downstream small and medium-sized enterprises, transform the uncontrollable risk of a single enterprise into the controllable risk of the whole supply chain enterprise, and obtain all kinds of information in a three-dimensional way to control the risk to a minimum.

Simply put, it is a financing model in which banks link core enterprises with upstream and downstream enterprises to provide flexible financial products and services.

The emergence of supply chain finance

Generally speaking, the supply chain of a specific commodity goes from the procurement of raw materials to the manufacture of intermediate products and final products, and finally the products are delivered to consumers by the sales network, which connects suppliers, manufacturers, distributors, retailers and end users as a whole.

In this supply chain, the core enterprises with strong competitiveness and large scale, because of their strong position, often put forward strict requirements on the consistent conditions of delivery, price and payment term for upstream and downstream supporting enterprises, thus causing great pressure on these enterprises. The upstream and downstream supporting enterprises happen to be small and medium-sized enterprises, and Yayi is financing from banks. As a result, the capital chain is very tired and the whole supply chain is unbalanced.

The essence of supply chain finance is to rely on risk control variables to help enterprises revitalize their current assets and solve financing problems.