The impact of supply chain financing on SMEs performance in Global supply chain

The purpose of the article is to evaluate the factors affecting supply chain finance and the influence of supply chain finance on supply chain financing performance and SMEs performance in Vietnam. The study was conducted on 856 small and medium enterprises in Vietnam for 3 consecutive months. The data is processed by Smart PLS 3.3.6 software, the results show that credit quality, supply chain integration, information sharing, and information technology all have a statistically significant impact on supply chain finance. Besides, supply chain finance has a statistically significant impact on supply chain financing performance and SMEs performance. Finally, the innovation capability and the market response capability act as full mediators in the relationship between supply chain finance and supply chain financing performance. Based on the research results, we propose solutions and recommendations to help small and medium enterprises better access capital and improve business performance.

Research on the Influence Mechanism of Block Chain on the Credit of Transportation Capacity Supply Chain Finance

This paper aims at the promotion of the application of inclusive financing into transportation capacity financing by combining transportation capacity supply chain with block chain technology as a brand-new financing topic. It focuses on the influencing mechanism by block chain on credit access, credit line, and credit supervision. From the perspective of “transportation” finance, the application of block chain in different scenarios is demonstrated after analyzing the attenuation process of credit transmission in the supply chain, the reviewing of two credit line evaluation methods of business self-compensation and credit guarantee, and the reviewing of regulatory requirements in transaction closed-loop, delivery closed-loop, and capital closed-loop; therefore the 3 major influencing mechanisms by block chain on the transportation capacity supply chain financing credit granting are discovered, indicating the effective improvement of financial institutions participation and better credit line for the financing of micro, medium, and small transportation enterprises (SMEs) by the application of block chain technology.

Financial Service Based on Data Federation: An Application in Tobacco Supply Chain

Objectives: We carry out governing research on the structure of the supply chain financing based on data federation, taking tobacco supply chain as an example so as to achieve the goal of establishing real-time, transparent and traceable supply chain financing. Methods: Based on the requirements of data federation, we use horizontal federation, vertical federation and transferfederation to build digital federation model, it is to realize the integrated credibility and risk control of supply chain financing. Results: Through data federation modeling, the data in the tobacco supply chain is linked. With complete data, financial institutions can remove invalid customers in the preliminary review process and effectively control the cost of credit review. Conclusion: The construction of supply chain financingtrust mechanism under data federation can optimize the lending data flow of theenterprises.

Coordinating Supply Chain Financing for E-commerce Companies Through a Loan Contract

This paper considers an online retailer and his or her manufacturer, both facing financial constraints and wishing to get loans from their e-commerce platform-backed finance company. Based on shared transaction data and monitored sales accounts, a tripartite loan contract is proposed to coordinate three parties’ actions in this supply chain financing problem. We prove that the proposed loan contract aligns the decentralized decision-makings of each party and duplicates the optimal channel performance under a fully integrated decision-making framework. A case study is then conducted to illustrate the performance of the proposed loan contract. The result shows that the proposed loan contract outperforms wholesale-price contracts, where coordination does not take place, and buyback contracts, where coordination happens between the retailer and the manufacturer only. Furthermore, a sensitivity analysis reveals that profit allocations among the lender, the retailer, and the manufacturer resulted from the proposed loan contract are more balanced when the cost-to-retail ratio or risk premium is high.

Research on Financing Risk Control Based on Small and Medium Sized Enterprises

Objectives: Funds are important for the enterprises as blood for body. Sufficient ensure the enterprise to develop for the long time. What’s more, sufficient funds can ensure the companies to do what it wants to do at any time. So fund management is still the core of the finance management for the companies. The companies financing is the process of the collecting funds. In China, according to the modern enterprise, among the registered enterprise, medium and small-sized enterprises are 99%. Methods: Medium and small-sized enterprises want to succeed facing the violent market competence. From native and alternative status, because of the small scale, resisting risk, limited management and loan ability, there are contraction and ownership barriers between the commercial banks and medium and small-sized enterprises. Government law and policy is not full. Capital market should be unblocked. Results: According to corporate financing theory, native and alternative financing status, financing channel in market and the example of middle-little company. The paper discount on notes, supply chain financing, application of floating, bank loan and alternative brand tactics union. Conclusion: At last the research financing tactics and risk management. I hope tossing out a brick to attract jade for medium and small-sized enterprises financing through the study.

Application of Blockchain for Supply Chain Financing: Explaining the Drivers Using SEM

Owing to the lack of research in emerging Asian nations, this research aimed to unearth the determinants of blockchain acceptance for supply chain financing by a Bangladeshi financing company called IPDC. Centred on a technology acceptance framework called UTAUT (unified theory of acceptance and use of technology) and open innovation research, an expanded model with a mediating variable is developed for this study. This research work employs the deductive inference method in conjunction with the positivism paradigm. A structural questionnaire was used to gather data, which were then processed through Smart-PLS (partial least square) for SEM (structural equation modeling). The survey includes all the people who are directly or indirectly involved in the supply chain financing platform of IPDC. The study consists of seven direct hypotheses and one mediating hypothesis. The results show that all the direct hypotheses except the impact of social influence on the behavioural intention to use (BINTU) blockchain are significant. The mediating hypothesis indicating the role of BINTU in the relationship between facilitating conditions (FCON) and the actual use of blockchain is also supported. FCON and BINTU together explain 88.7% variation in blockchain use behaviour for supply chain financing. The research advances past findings by employing an expanded UTAUT framework and validating observations with the other relevant studies throughout the world.

Part III Innovation and Trade-Finance Challengers, 14 Something Old, Something New: Open Account, Prepayment, and Supply Chain Finance

Letters of credit have increasingly come under strain as a payment mechanism in international trade as a result of increased technology, competition, and regulation. At the same time, the letter of credit’s efficiency has reduced over time as a result of its processing costs and speed. The space created by the decline of the letter of credit has been filled by trade parties turning to open account and prepayment terms, whilst using Supply Chain Financing (‘SCF’) techniques to provide the requisite liquidity. The advantages of such payment terms are principally their speed, convenience and cost, all of which the letter of credit increasingly lacks. Accordingly, it is unlikely that this trend towards SCF techniques will abate any time soon. Nevertheless, there are still legal difficulties associated with such payment and liquidity-enhancing techniques, as well as uncertainty associated with the regulatory and accounting treatment of these devices. If open-account trading and SCF techniques are going to eclipse the letter of credit as a payment mechanism, these challenges will have to be addressed.

Trade Finance

Trade Finance provides a much-needed re-examination of the relevant legal principles and a study of the challenges posed to current legal structures by technological changes, financial innovation, and international regulation. Arising out of the papers presented at the symposium, Trade Finance for the 21st Century, this collection brings together the perspectives of scholars and practitioners from around the globe focusing on core themes, such as reform and the future role of the UCP, the impact of technology on letters of credit and other forms of trade finance, and the rise of alternative forms of financing. The book covers three key fields of trade finance, starting with the challenges to traditional trade financing by means of documentary credit. These include issues related to contractual enforceability, the use of “soft clauses”, the doctrine of strict compliance, the fraud exception, the role of the correspondent bank, performance bonds, and conflict of laws problems. The second main area covered by the work is the technological issues and opportunities in trade finance, including electronic bills of exchange, blockchain, and electronically transferable records. The final part of the work considers alternative and complementary trade finance mechanisms such as open account trading, supply-chain financing, the bank payment obligation, performance bonds, and countertrade.