Supply chain finance is based on analysis on the internal transaction structure of the supply chain model. It employs the credit model of self-liquidating trade financing and introducing new risk control variables such as core enterprises, logistic supervision company and fund flow guiding tool, so as to provide close-ended credit support and other comprehensive financial service for different functional areas of the supply chain.
Currently, all aspects of the industrial finance chain encounter tremendous challenges:
- ■ The upstream and downstream partners face increasingly worsened environment for their survival, which severely influences the supply chain competitiveness of the core enterprises.
- ■ The main competitiveness of the core enterprises is still kept in the areas of research, procurement, production and sales. They strong in will but weak in power to support micro-, small- and medium-sized enterprises.
- ■ It’s about time for core enterprises to gain profit from in-depth supply chain development.
Micro-, small- and medium-sized enterprises:
- ■ Difficulties in financing: Under the traditional credit model, it is difficult for micro-, small- and medium-sized enterprises to get bank credit, thus they have few financing channels and often encounter much difficulties in financing.
- ■ Higher financing cost: With limited channels, the micro-, small- and medium-sized enterprises have to bear higher financing cost, which seriously impairs their competition ability.
- ■ Under-development of IT infrastructure: Because of the above problems, the micro-, small- and medium-sized enterprises are always lack of motivation to employ expensive IT system to promote their own management capability.
Financial or non-financial agencies which provide financial services:
- ■ Higher credit investigation cost: Because of geographical dispersion and information access difficulties of the micro-, small- and medium-sized enterprises, all have led to higher credit investigation cost.
- ■ Difficulties in data acquisition: The agencies that provide financial services can hardly get complete data of the supply chain, so it will be quite risky to give credit to the whole supply chain.
More than ten years’ hard work in the implementation of high-end corporate ERP projects give HAND rich understanding about the need of Chinese manufacturing industry for management informatization, as well as unique and deep insight on the industrial finance environment in China. Therefore, HAND organizes experienced consultants from various industries and fields to introduce its own supply chain cloud platform, and is determined to contribute itself to “serving the micro-, small- and medium-sized enterprises and supporting the real economy”.