Keywords
Commercial factoring
Supply chain finance
Business model
Submitted : 2024-06-11
Accepted : 2024-06-26
Published : 2024-07-11
Abstract
As a typical form of supply chain finance, factoring helps solve the financing difficulty of SMEs. With the rapid development of supply chain finance and blockchain, factoring has more development opportunities with constantly emerging innovation models. In summarizing the development of the factoring business in China, this paper focuses on the comparative analysis of the business models of forward factoring, reverse factoring, “1 + N + 1” factoring, and their applicable situations. The main conclusion is that forward factoring is applicable to the backward supply chain, whereas reverse factoring is also applicable to the forward supply chain.
References
Gelsemino LM, Mangiaracina R, Perego A, et al., 2016, Supply Chain Finance: A Literature Review. International Journal of Physical Distribution & Logistics Management, 46(4): 348–366.
Tanrisever F, Cetinay H, Reindorp M, et al., 2015, Reverse Factoring for SME Finance. http://dx.doi.org/10.2139/ssrn.2183991
Lekkakos SD, Serrano A, 2016, Supply Chain Finance for Small and Medium Sized Enterprises: The Case of Reverse Factoring. International Journal of Physical Distribution & Logistics Management, 46(4): 367–392
Rumeysa B, Yusuf D, 2019, Factoring as a Determinant of Capital Structure for Large Firms: Theoretical and Empirical Analysis. Borsa Istanbul Review, 19(3): 273–281.
Yu H, Ma YL, 2015, Supply Chain Finance Model of Order-to-Factoring Financing Model. Systems Engineering Theory and Practice, 35(07): 1733–1743.
Chen ZJ, Yu H, 2018, Supply Chain Cooperation in Reverse Factoring under Capital Constraint. China Management Science, 26(12): 113–123.
Chen ZJ, Yu H, 2020, Robust Decision-making for Supply Chain Reverse Factoring under Demand Disturbance. China Management Science, 28(7): 89–101.
Yang RL, Ceng XY, Zhong YG, et al., 2022, Financing and Inventory Decisions Considering Retailer Competition under Order-to-Factoring Financing Model. Journal of Industrial Engineering and Engineering Management, 36(4): 207–217.
Li HH, Hu XL, 2022, Optimal Factoring Financing and Production Strategy under Deterministic Demand. Operation and Management, 31(03): 233–239.