At the end of the third quarter, according to media reports, capital prices rose across the board. Although the central bank recently launched a 140 billion yuan reverse repurchase operation, the overnight capital interest rate still rose sharply by more than 30 basis points. The weighted average interest rate of DR001 rose from 1.79% on September 17. As of 2.12% on September 23, the inter-season 14-day fund price has also risen sharply, and the market is experiencing tight liquidity at the end of the quarter.

Under the shortage of funds, the already prominent problem of difficult and expensive financing for small and medium-sized enterprises has become more prominent. In particular, some enterprises with good development prospects in the industrial chain have missed good opportunities and even died halfway.

Under the situation that our country has entered the stage of high-quality development, how to use new technologies to identify the advantages and disadvantages of enterprises in the supply chain and provide precise credit support has become a prominent practical problem.

On September 24, a report on Evergrande Group's appeal to support a major asset restructuring project continued to ferment on the Internet, causing fierce social repercussions. Although Evergrande denied it, Evergrande's stocks and bonds all ushered in a sharp drop the next day, which shows that the market is panicking about the news.

It was found that although the focus of the incident was the asset reorganization of Evergrande Real Estate and Shenzhen Real Estate A, the market was more concerned about the consequences of unsuccessful reorganization, that is, Evergrande would bear more serious debts, and even the capital chain would break. It will have a great impact on 8,441 enterprises in the upstream and downstream industrial chains. Some enterprises may go bankrupt, and millions of people may even lose their jobs.

It can be seen that truthfully grasping the situation of the enterprise's industrial chain and actively intervening to solve the problems that arise will eliminate many problems in the bud and prevent problems before they happen.

Facts have proved that in the field of supply chain finance, core enterprises and upstream and downstream enterprises often adopt the method of extending the account period to relieve their respective financial pressures, but this transmission of account period is likely to cause a certain enterprise in the supply chain to face Bankruptcy crisis, which in turn leads to problems in the entire supply chain.

For supply chain finance, the emergence of blockchain can realize the trust transfer between supply chain enterprises and help enterprises to better activate assets, thereby effectively solving the problem of difficult and expensive financing for small and medium-sized enterprises, and improving the efficiency of the entire supply chain. flow efficiency.

Supply chain finance urgently needs "external force" blessing

For a long time, small and medium-sized enterprises have difficulty in financing, expensive financing, and slow financing due to insufficient credit, relative lack of collateral, and information asymmetry. It can be said that solving the difficulty of financing for SMEs and the high cost of financing has always been a difficulty that the government has paid attention to.

In order to solve this problem, the government has introduced a series of policies, which can be said to have alleviated the severity of the problem, but still have not solved the problem. As a new force of inclusive finance, supply chain finance, through the "four-in-one" of logistics, capital flow, information flow, and business flow, makes the core enterprises in the supply chain and related upstream and downstream enterprises as a whole, Endorsed by the credit of core enterprises, based on the premise of real trade, and using self-compensating trade financing, it can provide comprehensive financial products and services for small and medium-sized enterprises in the upstream and downstream of the supply chain.

The country has also seen the unique advantages of supply chain finance in solving the financing difficulties of small and medium-sized enterprises, and introduced encouraging policies. With various benefits, more and more financial institutions regard supply chain financing as a new direction of serving small and medium-sized enterprises, and actively deploy and innovate various forms of supply chain financial business. As the nerve endings of the industrial chain, enterprises are affected and radiated by the entire industrial chain, and increasingly rely on supply chain finance to survive.

According to relevant media forecasts, as commercial banks, third-party payment agencies, and logistics companies have shifted from C-end finance to B-end layout, the development of supply chain finance has ushered in an explosive period. In 2020, the domestic supply chain finance market is expected to reach 27 Trillion, it can be said that the development prospects are very broad.

As traditional banks and financial technology companies have deployed in supply chain finance, the difficulty of financing for small and medium-sized enterprises has been alleviated to a certain extent. However, with the development of business, the help of supply chain finance to small and medium-sized enterprises in practice is not as good as imagined, and there are still many problems to be solved. This gives the blockchain space to show its talents.

At the same time, problems such as the inability to transfer corporate credit, the existence of isolated islands of information in the supply chain, and the difficulty of verifying the authenticity of trade backgrounds are also key factors restricting the development of supply chain finance. In addition, it is difficult to integrate the information of the whole supply chain, the information of upstream and downstream enterprises is separated, and the information transparency is not high, which will lead to the emergence of "data islands". For example, the data obtained by banks when doing supply chain financial business is provided by core enterprises and first-tier suppliers in the industry chain, and the credit of core enterprises is difficult to pass on to downstream enterprises. Banks face a single downstream enterprise to solve the problem of information symmetry, The cost of mastering corporate credit is very high. At the same time, due to the separation from the industrial chain, corporate financing often goes it alone, and it is difficult to form better credit enhancement measures. It is difficult for banks to control risks, so they basically choose to refuse loans.

How Blockchain Technology Empowers Supply Chain Finance

Supply chain finance is a typical scenario of multi-subject participation, information asymmetry, imperfect credit mechanism, and non-standard credit targets, which has a natural fit with blockchain technology. It can even be said that supply chain finance is one of the best scenarios for the application of blockchain.

First of all, blockchain technology can integrate effective information and break information islands. Under the blockchain architecture, the participants in the supply chain ecology jointly maintain a public ledger according to the agreement, and each transaction is recorded after the consensus of all. All data on the public ledger is visible, which can effectively guarantee the data subject's right to access and data portability, and endow the data subject with a more flexible ability to dispose of their own data. Through this feature, the authenticity of trade behavior can be verified, providing rich and credible trade scene.

Secondly, the immutable and traceable characteristics of the blockchain can solve the trust problem. The data on the chain cannot be tampered with, and the characteristics of traceability can realize the endorsement utility of core enterprises along the credible financing link, and carry out secondary endorsement for the credit of small and medium-sized enterprises, which solves the problem that the credit of core enterprises is difficult to be transmitted to the end of the supply chain. A substantial flow of trust has been achieved. This not only greatly improves the competitiveness and efficiency of the supply chain, but also greatly reduces the financing costs of suppliers in the chain, providing efficient and convenient financing channels for upstream and downstream small and medium-sized enterprises in the supply chain.

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epilogue

In order to promote the application of blockchain technology in supply chain finance, Wangchain Technology, as a one-stop solution provider for blockchain technology, builds trust in multi-party alliances such as financial institutions, core enterprises in the industrial chain, chain enterprises, and suppliers. System and value network, release and transfer the credit of core enterprises, reduce capital settlement costs and financing costs of the industrial chain, enhance capital and asset liquidity, and promote the healthy development of the entire supply chain ecology.