The reason why we do supply chain finance: The biggest feature of “supply chain finance” is to find a large core enterprise in the supply chain, and to provide financial support for the supply chain based on the core enterprise. On the one hand, the funds are effectively injected into the relatively weak upstream and downstream supporting small and medium-sized enterprises to solve the problem of financing difficulties and supply chain imbalances of SMEs; on the other hand, integrating bank credit into the purchase and sale of upstream and downstream enterprises, enhancing their commercial credit and promoting SMEs and core enterprises establish long-term strategic synergies to enhance the competitiveness of the supply chain.
Supply chain finance, in a nutshell, is a financing model in which banks connect core companies with upstream and downstream companies to provide flexible financial products and services. That is, using funds as a solvent in the supply chain to increase its liquidity.
In general, the supply chain of a particular commodity, from the procurement of raw materials to the production of intermediate and final products, is ultimately sent to the consumer by the sales network, from suppliers, manufacturers, distributors, retailers, to end users. Connected into a whole. In this supply chain, core enterprises with strong competitiveness and large scale often have strict requirements on upstream and downstream supporting enterprises in terms of terms of delivery, price, and terms of terms, due to their strong position, thus causing huge losses to these enterprises. pressure. The upstream and downstream supporting enterprises are mostly small and medium-sized enterprises, which are difficult to finance from banks. As a result, the capital chain is very tight and the entire supply chain is out of balance.