Small and medium-sized enterprises (SMEs) are crucial to the development of China's national economy. They significantly contribute to job creation, economic efficiency, industrial innovation and upgrading, economic transformation, and social stability. However, due to their low core competitiveness, high operational risks, and lack of collateral, SMEs commonly face difficulties in obtaining financial services, an inconsistency with their important strategic role in the development of the national economy. The issues of "difficult and expensive financing" have become major obstacles to the survival and growth of SMEs.
With the shift in international labor division and strong government support, various industries have actively responded to market demands by innovating and producing financial products. Consequently, supply chain finance has emerged as a new avenue to address the financing challenges faced by SMEs. Despite the advantages of the supply chain financing model for all participating parties and its significant development in China in recent years, supply chain finance is still in its early stages. It has not yet fully demonstrated its capacity to assist enterprises with financing. There remains considerable room for improvement and expansion in its practical application. In light of this, this paper aims to comprehensively review the concepts and characteristics of supply chain finance models, providing a rich theoretical and practical foundation for its continued development and implementation.
The research content is divided into four parts: First, a detailed review and analysis of the basic background, ideas, and three fundamental models of supply chain finance. Second, an examination of the benefits of supply chain finance in alleviating the financing challenges faced by SMEs. To support this view, this paper employs a sample of data from SMEs listed on the SME Board between 2013 and 2020, using a cash flow sensitivity model for a comprehensive empirical test. Third, an empirical analysis of the effectiveness of supply chain financial services in mutual empowerment, based on operational case studies of Zhonghuan Smart Logistics and Zhonghuan City. Fourth, based on an analysis of the current state of supply chain finance application in China, recommendations are made to address the primary issues identified, promoting the rapid development of the supply chain finance model in the domestic market and encouraging more enterprises to adopt this model.
