What are the main models of supply chain finance?

In the supply chain, the different strengths of each enterprise mean that they are not in a completely equal position in the transaction process and are at a disadvantage. The cash flow gap of small and medium-sized enterprises has its own characteristics. So, below are the main models of supply chain finance that I have compiled for you. You are welcome to read and browse.

1. Supply chain financing in the procurement stage? Advance payment financing model

In the procurement stage, a supply chain financing business model based on advance payment financing is adopted to enable payment of cash. Delay the time point as far as possible to reduce the cash flow gap; in the daily operation stage, adopt a supply chain financing business model based on movable property pledge to make up for the cash flow gap from "paying cash" to "selling inventory"; In the sales stage, a supply chain financing business model based on accounts receivable financing is adopted to make up for the cash flow gap between "selling inventory" and "receiving cash".

From the perspective of product classification, advance payment financing can be understood as "financing of future inventory". Because from the perspective of risk control, the guarantee basis of advance payment financing is the customer's right to take delivery of goods from the supplier under the advance payment, or the inventory in transit and inventory formed through delivery, transportation and other links after the right to take delivery is realized. The situation of delivery right financing is such as guaranteed delivery (or confirmed warehouse), which means that the customer pays an advance payment to the upstream through bank financing. After the upstream receives the payment, it will issue a bill of lading, and the customer will pledge the bill of lading to the bank. The customer then picks up the goods in installments by paying the bank in installments. For some companies with very good sales, there are often very few inventory materials, so the main demand for financing arises from waiting for upstream production scheduling and the in-transit cycle of goods. In this case, if the buyer transports the goods, the bank will generally designate a neutral logistics company to control the logistics link and form a pledge of the inventory in transit; if the seller transports the goods, it is still a pledge of the right to take delivery. After the goods arrive at the buyer, the customer can apply to the bank for renewal of inventory financing in the warehouse. In this way, advance payment financing becomes a "bridge" link in inventory financing.

The loan purpose of traditional working capital loans can also be designated for advance payments, and in a broad sense, advance payment financing includes the bank's credit branch for customer purchasing activities, such as the issuance of a letter of credit. But in both cases, banks generally require credit applicants to provide real estate pledges or guarantees to cover the exposure. Obviously this is different from the concept of advance payment financing in supply chain financing. In the advance payment financing of supply chain financing, the guarantee support of the financing is exactly the trade acquisition under the financing, so the asset support requirements for customer financing are simplified to the maximum extent. Small and medium-sized enterprises in the lower reaches of the supply chain often have short payment terms for goods obtained from large upstream enterprises, and sometimes need to make advance payments to upstream enterprises. For small and medium-sized enterprises that have difficulty in short-term capital flow, they can use the prepayment financing model to finance a special prepayment account, thereby obtaining short-term credit support from financial institutions.

The prepaid account financing model is that on the premise that the upstream core enterprise (seller) promises to repurchase, the small and medium-sized enterprises (buyer) apply to the financial institution for pledge with the established warehouse receipt in the warehouse designated by the financial institution. Loans and financing operations subject to the control of the financial institution on its right to withdraw goods.

The basic business process is as follows:

1. Small and medium-sized enterprises (downstream enterprises, buyers) and core enterprises (upstream enterprises, sellers) sign purchase and sales contracts, and negotiate the terms of the agreement. Small and medium-sized enterprises apply for loans, which are specifically used to pay for the purchase of goods;

2. Small and medium-sized enterprises apply for warehouse receipt pledge loans from financial institutions based on purchase and sales contracts, which are specifically used to pay the payment for the transaction to the core enterprise; < /p>

3. Financial institutions review the credit status and repurchase capabilities of core enterprises. If the review is passed, they will sign repurchase and quality assurance agreements with the core enterprises;

4. Financial institutions and logistics The enterprise signs a warehousing supervision agreement;

5. After receiving the notice from the financial institution that the core enterprise (seller) agrees to finance the small and medium-sized enterprises (purchaser), it shall issue a warehouse to the warehouse of the logistics enterprise designated by the financial institution. goods, and hand over the obtained warehouse receipts to financial institutions;

6. Financial institutions allocate payment to core enterprises after receiving warehouse receipts;

7. Small and medium-sized enterprises pay deposits, Financial institutions release a corresponding proportion of the right to pick up goods to small and medium-sized enterprises, and inform logistics companies that they can release a corresponding amount of goods to small and medium-sized enterprises;

8. Small and medium-sized enterprises obtain the right to pick up goods and go to the warehouse to pick up a corresponding amount of goods; The cycle continues until the balance in the deposit account equals the amount of the bill and the small and medium-sized enterprises have withdrawn all the goods. The repurchase agreement and pledge contract related to this financing activity will be canceled accordingly.

The prepaid account financing model enables leveraged purchasing by small and medium-sized enterprises and bulk sales by core large enterprises. What small and medium-sized enterprises obtain through the prepaid account financing business is the right to pay for the goods in batches and pick up the goods in batches. They do not have to pay the full payment for the goods at once, thus providing financing convenience for small and medium-sized enterprises at the supply chain node and effectively alleviating the problem. The short-term financial pressure caused by full purchase.

In addition, for financial institutions, the prepaid account financing model is premised on the commitment of core large enterprises in the upstream of the supply chain to repurchase, with the core enterprises assuming joint and several guarantee responsibilities for the financing of small and medium-sized enterprises, and based on the established warehouse receipts of the designated warehouses of the financial institutions. Pledge, thereby greatly reducing the credit risk of financial institutions, while also bringing benefits to financial institutions, achieving a win-win goal.

2. Supply chain financing in the operation stage? Chattel pledge financing model

Chattel pledge business is a bank’s use of the borrower’s own goods as pledge to issue credit loans to the borrower. business. Due to the strong liquidity of movable assets such as raw materials and finished products and the provisions of my country's laws on the conditions for the validity of mortgages and pledges, financial institutions are faced with great challenges in terms of logistics tracking, warehousing supervision, mortgage and pledge procedures, price monitoring and even liquidation of movable assets. challenges, which brings huge risks to financial institutions’ loans. Therefore, movable assets have always been unfavored by financial institutions. Even if small and medium-sized enterprises have a lot of movable assets, they cannot obtain loans based on them. Based on this, the supply chain financing model designs a chattel pledge financing model under the supply chain.

The chattel pledge financing model under the supply chain refers to a financing business model in which banks and other financial institutions accept chattels as pledges and issue loans to small and medium-sized enterprises with the help of the guarantee of core enterprises and the supervision of logistics enterprises. Under this financing model, financial institutions will sign a guarantee contract or pledge repurchase agreement with the core enterprise, stipulating that if the small and medium-sized enterprise violates the agreement, the core enterprise will be responsible for repaying or repurchasing the pledged chattels. Core enterprises in the supply chain tend to be larger and stronger, so they can help financing companies solve financing guarantee difficulties by guaranteeing, providing pledges or committing to repurchase, thereby ensuring good cooperative relations and stable supply with financing companies. sources of goods or distribution channels. Logistics companies provide services such as the custody of pledges, value assessment, and supervision of whereabouts, thereby building a bridge between banks and enterprises for financing. The essence of the chattel pledge financing model is to transform the chattels (mainly raw materials and finished products) that financial institutions are unwilling to accept into chattel pledge products that they are willing to accept, and use them as pledged collateral or counter-collateral for credit financing.

The specific operating model is as follows:

1. Small and medium-sized enterprises apply for chattel pledge loans from Huirong institutions;

2. Financial institutions entrust logistics companies to provide small and medium-sized enterprises with The value of the movable property provided by the enterprise is evaluated:

3. The logistics enterprise conducts a value evaluation and issues an evaluation certificate to the financial institution;

4. If the condition of the movable property meets the conditions for pledge, the financial institution shall approve it Loan amount, sign a movable property pledge contract with small and medium-sized enterprises, sign a repurchase agreement with core enterprises, and sign a warehousing supervision agreement with logistics companies;

5. Small and medium-sized enterprises hand over movable properties to logistics companies;

< p>　6. Logistics enterprises shall inspect the movable properties handed over by small and medium-sized enterprises and notify financial institutions to issue loans;

　7. Financial institutions shall grant loans to small and medium-sized enterprises.

The chattel pledge financing model under the supply chain is an innovative comprehensive service that integrates logistics services, financial services, and warehousing services. It effectively combines logistics, information flow, and capital flow. , interaction and comprehensive management. Comprehensive services aimed at expanding services, optimizing resources, improving operating efficiency, improving the overall performance of the supply chain, and increasing the competitiveness of the entire supply chain.

With the development of market competition and customer demand, the movable property pledge financing model under the supply chain has also developed and innovated the dynamic movable property pledge business, that is, the approved inventory pledge business. Compared with the static movable property pledge ( The biggest difference between non-fixed inventory pledges and non-fixed inventory pledges is that in dynamic chattel pledges, in addition to approving the pledge rate for the borrowing enterprise's goods and granting a certain proportion of the credit amount, the bank will also determine a minimum value control line based on the value of the inventory. When the value of the goods is above the control line, the borrowing company can apply for delivery or exchange of goods to the third-party logistics company on its own; when the value of the goods is below the control line, the borrowing company must apply to the commercial bank, and the third-party logistics company shall apply based on In the case of static movable property pledge business, the borrowing enterprise shall not withdraw or replace the goods pledged to the commercial bank at will unless the deposit is paid, the bank credit is returned, or other guarantees are added.

Chattel pledge can also be operated in the warehouse receipt pledge mode. Warehouse receipts can be pledged as rights certificates. If the warehouse receipts are pledged, the rights certificates should be pledged to the pledgee within the time limit stipulated in the contract. The contract shall take effect on the date of delivery of the contract voucher. Warehouse receipt generally refers to the deposit receipt issued by the warehouse operator to the depositor after accepting the entrustment of the customer (the owner of the goods) and depositing the goods in the warehouse to describe the inventory status. Warehouse receipt pledge can generally be divided into two modes: standard warehouse receipt pledge and non-standard warehouse receipt pledge:

1. Standard warehouse receipts are formulated uniformly by the futures exchange and completed by the designated delivery warehouse of the futures exchange. After the goods in the warehouse are accepted and confirmed to be qualified, the right-raising certificate is issued to the owner of the goods and registered with the futures exchange to become effective. After the standard warehouse receipt is registered with the futures exchange, it can be used for delivery, trading, transfer, mortgage, pledge and cancellation, etc. Standard warehouse receipt pledge refers to the credit business in which commercial banks use standard warehouse receipts as pledges to provide qualified borrowers (pledgers) with a certain amount of financing.

2. Non-standard warehouse receipts refer to equity certificates issued by third-party logistics companies evaluated and approved by commercial banks, in the form of general products with strong liquidity in the production and logistics fields. Non-standard single pledge refers to the credit business in which commercial banks use non-standard warehouse units as pledges to provide fixed-amount financing to qualified borrowers (pledgers). Starting from the field of logistics finance cooperation between Chinese commercial banks and third-party logistics companies, the non-standard warehouse receipt pledge business is more representative.

3. Supply chain financing at the sales stage? Accounts receivable financing model

The accounts receivable financing model refers to the seller’s undue accounts receivable under credit sales The payment is transferred to a financial institution, and the financial institution provides financing to the seller. Accounts receivable financing based on the supply chain generally provides financing for small and medium-sized enterprises in the upstream of the supply chain. Small and medium-sized enterprises (upstream creditor enterprises), core enterprises (downstream debt enterprises) and financial institutions all participate in this financing process. The core enterprise plays a counter-guarantee role in the entire operation. Once there is a problem with the financing enterprise (small and medium-sized enterprises), the core enterprise will bear the responsibility Responsibility for making up for the losses of financial institutions; financial institutions still have to conduct risk assessments on the enterprises before agreeing to provide loans to financing enterprises, but focus on the repayment ability of downstream enterprises, transaction risks and the operation of the entire supply chain. It is not just about assessing the credit standing of small and medium-sized enterprises.

Generally speaking, traditional bank credit pays more attention to the asset size of the financing enterprise, all assets and liabilities, and the overall credit level of the enterprise. The accounts receivable financing model is based on the trade contract between enterprises, based on the market acceptance of the financing enterprise's products and the profitability of the products. At this time, banks are paying more attention to the repayment ability of downstream enterprises, transaction risks and the operation of the entire supply chain, rather than just conducting risk assessments for small and medium-sized enterprises themselves.

In this model, as the core large enterprises of debt enterprises, because they have good credit strength and have long-term and stable credit relationships with banks, they play an important role in the process of financing small and medium-sized enterprises. As a counter-guarantee, once small and medium-sized enterprises are unable to repay their loans, they must also bear corresponding repayment responsibilities, thereby reducing the bank's loan risks. At the same time, under the influence of this constraint mechanism, in order to establish a good credit image and maintain long-term trade cooperation relationships with large enterprises, small and medium-sized enterprises in the industry chain will choose to repay bank loans on schedule and avoid evading bank loans. occurrence of phenomena. The accounts receivable financing model based on supply chain finance helps small and medium-sized enterprises overcome the disadvantages that their asset size and profitability level cannot meet bank loan standards, and their financial status and credit level cannot meet bank credit levels, and leverage the credit strength of core large enterprises. Help small and medium-sized enterprises obtain bank financing and reduce bank loan risks to a certain extent.

The specific operating model is as follows:

1. Small and medium-sized enterprises (upstream enterprises, sellers) and core enterprises (downstream enterprises, buyers) conduct goods transactions;

2. The core enterprise issues accounts receivable documents to the small and medium-sized enterprises and becomes the debtor in the goods transaction relationship;

3. The small and medium-sized enterprises use the accounts receivable documents to apply for pledge loans from financial institutions; < /p>

6. After financing, small and medium-sized enterprises use loans to purchase raw materials and other production factors to continue production;

7. Core enterprises sell products and receive payment;

8. The core enterprise will pay the prepaid account amount to the account designated by the financing enterprise in the financial institution:

9. The accounts receivable pledge contract is cancelled.

4. Combination of supply chain finance financing models-?1+N? supply chain financing paradigm

Supply chain finance is a comprehensive provision of services for multiple enterprises in the upstream and downstream of an industry supply chain. It has changed the past credit granting model of banks to a single enterprise entity. Instead, it focuses on a certain core enterprise, from the procurement of raw materials to the production of intermediate and final products, and finally the sales network delivers the products to consumers. This supply chain chain in our hands connects suppliers, manufacturers, distributors, retailers, and final customers into a whole, providing all-round financing services to N enterprises in the chain, and through the functional division of labor of relevant enterprises Cooperate with us to achieve continuous value-added throughout the supply chain. Therefore, it is called ?BuN? mode. ?1+N? Supply chain financing is the deepening of self-reimbursement trade financing and structured financing in terms of financing model and risk control. This kind of financing includes not only the financing of a single enterprise in the supply chain, but also the financing arrangement of the supply chain between the enterprise and the upstream seller or downstream buyer. It can also cover the entire supply, production and sales chain to provide overall supply chain trade financing. Solution: Based on the characteristics and needs of the enterprise's production and transaction process, the three basic supply chain financing models of advance payment financing, inventory financing and receivables financing can be combined into a more complex overall solution.

Take the financing arrangement for a single enterprise as an example:

1. Financing arrangement for the core enterprise: The core enterprise itself has strong strength and has strong control over the scale of financing, fund price, There are high requirements for service efficiency. This part of the product mainly includes short-term preferential interest rate loans, bill business (invoicing, discounting), corporate overdraft lines and other products.

2. Financing solutions for upstream suppliers: Upstream suppliers mostly use credit sales to core enterprises, and core enterprises generally use long-term procurement methods with upstream suppliers. Therefore, upstream corporate financing is mainly accounts receivable financing, mainly equipped with products such as factoring, bill discounting, and order financing.

3. Financing solutions for downstream distributors: Core enterprises generally adopt payment in advance, partial advance payment or credit sales within a certain amount for settlement of downstream distributors. If dealers want to expand sales, they must pay in cash (including bills) for purchases that exceed the quota. Financing solutions for downstream dealers mainly focus on advance payment financing in movable property and cargo rights pledge credit. The products provided mainly include short-term working capital loans, bill issuance, guarantees, domestic letters of credit, letters of guarantee, etc.

The ?1+N? supply chain financing model has significantly improved the trade finance risk situation. Establishing a direct credit relationship or a close cooperative relationship with core enterprises will help eliminate the risks caused by information asymmetry of core enterprises, achieve a high degree of unity of logistics, capital flow and information flow in the business operation process, and solve the risks in financing and credit for supporting small and medium-sized enterprises. Dilemmas of judgment and risk control.

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