Differences, integration of financial leasing and supply chain finance
What are the differences between financial leasing and supply chain finance? How is the integration? Here is some analysis information, welcome to read to understand.
The main body is different
Financial leasing
The business of financial leasing is mainly carried out by financial leasing companies. The financial leasing company uses its own funds to purchase the equipment needed by the lessee from the supplier and then leases it to the lessee, earning the difference between the purchase amount and the rental income. Of course, the financial leasing business also involves other financial or non-financial institutions such as banks, insurance companies and guarantee institutions, but less often involves member companies of the supply chain.
It is relatively single independent economic entity. And the service object of the financial leasing company is not limited to a certain industry field, as long as the financing needs of small and medium-sized enterprises can become the service object of the company.
The future development trend of the general financial leasing industry has two directions: one is to the direction of the development of large and comprehensive financial leasing giants, this type of financial leasing company will continue to expand its business areas, from the traditional machinery manufacturing, shipbuilding, heavy industry, and other fields to the expansion of cultural creativity, agricultural products, and other fields; the other direction of development is to the development of specialized segments, deep plowing in a particular The other direction of development is to specialize in the development of niche areas, deep plowing in a particular industry, towards the characteristics of the development of financial leasing enterprises.
With the development of the financial leasing industry, more and more financial leasing companies will appear in the market competition, but the social capital increment in the short term increase is not large, which means that most of the financial leasing company's scale is not large, the assets are limited, in addition to a small number of large-scale financial leasing enterprises in the market, the majority of financial leasing companies are small and medium-sized financial leasing companies with limited asset size. The development direction of this type of company is to develop in the direction of the market. The development direction of this type of company should be to explore the niche market and y cultivate in a certain niche industry.
Supply chain finance
The main body of supply chain finance is the core enterprises in the supply chain, and the types of core enterprises vary greatly, with different core enterprises in different supply chains. Different supply chains are composed of different member enterprises, and with different core enterprises, the business subject of supply chain finance is different.
Supply chain finance is a financing model in which banks and other financial institutions utilize the credit of the core enterprises of the supply chain to provide credit lines to small and medium-sized enterprises (SMEs) in the supply chain, with the core enterprises acting as guarantors. There are mainly inventory financing, prepayment financing, accounts receivable financing, accounts payable financing and so on. The provider of funds is often banks and other financial institutions, the guarantor is the core enterprises in the supply chain, mainly through the granting of a certain credit period and credit limit to solve the financing difficulties of small and medium-sized enterprises.
In practice, banks and other financial institutions only choose certain industries to carry out this business based on risk prevention and control considerations, such as steel, timber, automobile manufacturing and other industries. These industries have a ****similarity that is more mature, the value of the product is easy to determine, the product is also easy to realize in the trading market.
From this point of view, financial leasing and supply chain finance have the *** same point in the choice of industry sectors are prioritized to consider the risk of relatively controllable industries, while bypassing or temporarily avoiding the riskier industries. However, the future development trend of both is to expand to more business areas and continuously open up new profit space. As financial leasing companies, banks and other financial institutions in the financial services for small and medium-sized enterprises in the risk prevention and control of a greater improvement, there will be more companies to enter the riskier industries, such as cultural and creative industries.
National support policies tend to be different
Financial leasing
Financial leasing has a very important position in the international arena, and in many developed countries in the West, financial leasing has become the second largest financing channel after bank loans, with a huge market scale, and a long history of development with a relatively mature business paradigm. It has been vigorously pursued by various countries. China is currently in a critical period of economic transformation, the country to stimulate the enthusiasm of the general public of entrepreneurship and innovation, must increase the strength of financial support. Financial leasing has a natural advantage in serving small and medium-sized enterprises, so recently the national, provincial and municipal governments have intensively introduced a lot of support policies. The regions have also formulated rules in line with the actual development of the regions according to the national policy, and the subsequent introduction of rules will better promote the development of the financial leasing industry.
Supply Chain Finance
National policies specifically aimed at supporting supply chain finance are still relatively few, and some policies will mention the need to promote the development of supply chain finance, such as in the policies related to financial leasing mentioned in the supply chain finance. Compared with the two, the support policies for supply chain finance are less than those for financial leasing. The reason for this is that the development of supply chain finance is relatively short, and both banks and other financial institutions as well as the government are in the exploratory stage, and the introduction of relevant policies without exploring the characteristics and modes of the development of supply chain finance may not be conducive to the development of the industry. With the continuous development of supply chain finance, related problems will continue to arise, and the state will introduce corresponding policies to address these problems.
Risks are different
Financial leasing
Financial leasing companies buy the subject matter of the financing, and then lease it to the SMEs to use it, and then collect the rent to return to the capital and earn a certain amount of income. The subject matter is often the facilities and equipment that the SMEs need, these equipments can create certain value to the SMEs, which is the important material basis for the SMEs' survival and development. The SMEs know that once they default on the contract, the financial leasing company will take back the subject matter of the financing, after all, the ownership of the subject matter of the financing belongs to the financial leasing company, and the recovery of the SMEs will result in a fatal blow to the SMEs, and the enterprises will stop working or even stop using the facilities and equipments for the production. The company's business is to provide the best possible service to its customers, and the company's business is to provide the best possible service to its customers.
Therefore, SMEs' subjective willingness to default is lower when compared to supply chain finance because the cost of default is too high. It is based on this point, the lessee does not have the ownership of the subject matter of the financing, the risk of financial leasing company will be small.
At the same time, the financial leasing company will be more cautious in approving the project, and will exclude some small and medium-sized enterprises that do not meet its requirements in the financial leasing services, in order to reduce the risk. And financial leasing is the use of period by period return of rent back, financial leasing company's return is guaranteed, as long as the enterprise does not appear a large crisis, once every period of rental income can be guaranteed.
Supply chain finance
For supply chain finance, the risk of financial institutions such as banks and other financial institutions is relatively high, whether it is inventory pledge financing or accounts receivable financing. These funds are only returned to banks and other financial institutions when the enterprise has actual income after the product is sold. Although it is a closed-end credit loan, the return of the loan comes from the sales return. And the enterprise's sales situation has a great deal of uncertainty, which brings a great deal of risk to the credit-granting party.
Financial leasing and supply chain finance can be integrated development
Financial leasing and supply chain finance can be used to solve the problem of financing difficulties of small and medium-sized enterprises, and the two can be integrated development. Banks lending to financial leasing companies and credit to SMEs through supply chain finance can be managed in a coordinated manner, and banks can set up special supply chain finance and financial leasing divisions to unify the arrangements for the credit management of the funds.
Because the biggest beneficiaries of supply chain finance and financial leasing are small and medium-sized enterprises (SMEs), and the main source of funds also comes from banks and other financial institutions. Therefore, the source of funds and the end use of funds are the same, in this context, banks and other financial institutions can financial leasing and supply chain finance to coordinate the development, in order to reduce the development of fragmentation brought about by . The problem of large transaction costs arises. In addition, the integrated and coordinated development can also reduce the risks faced by banks and other financial institutions.
Many of the risks faced by financial leasing and supply chain finance are the same. The development of these businesses will be affected by the economic environment, for example, the market is weak, the supply chain finance and financial leasing business will be affected, the product sales are not good, the corresponding technical transformation of the equipment is not strong, even if the enterprise has the will but not the strength to update the transformation.
The integration of financial leasing and supply chain finance has become a development trend. Standing in the perspective of banks and other financial institutions, they should grasp the opportunity of such a development, as soon as possible, the two will be coordinated development, to explore their coordinated development of the law behind the possible problems encountered, the establishment of a corresponding coordination mechanism and the relevant departments. At present, the competition in the financial industry is getting more and more intense, and banks and other financial institutions urgently need to find a new profit model, and bold innovation is one of the solutions. Only by boldly trying to bundle financial leasing and supply chain finance can banks open up new profit space.
Interpenetration of financial leasing and supply chain finance
1. Financial leasing companies can get involved in supply chain finance.
The financial leasing company purchases the subject matter of the financing, and then leases the subject matter to the small and medium-sized enterprises (SMEs) to use. From the perspective of the SMEs, the financial leasing company becomes the actual supplier, and the seller of the subject matter is the actual supplier of the financial leasing company. Such a relationship structure is consistent with the organizational structure of a traditional supply chain.
Therefore, the financial leasing company becomes a part of the supply chain. And some financial leasing companies have very strong capital, which can be regarded as the core enterprise in the supply chain. This way, the financial leasing company can provide supply chain financial services to the downstream SMEs just like the core enterprises in the traditional supply chain. That is to say, the rent can also be deferred, and there can be discounts for early return of rent. At the same time, the financial leasing company can pledge the future rental income to apply for loans from banks. At the same time, the financial leasing company can provide financing guarantees for SMEs, so that banks and other financial institutions can directly finance SMEs.
The establishment of a financial leasing company is supported by the relevant national policies, the state also has the relevant industrial support funds, as well as the government background of the guarantee company for the financial leasing company to provide guarantees, and the establishment of the financial leasing company needs to be approved by the relevant departments, the company was established in a sense that the credit on a sense of assurance. The bank and such a financial leasing company to deal with its risk is relatively low.
Therefore, the financial leasing company can act as the core enterprise in the supply chain. In addition, the financial leasing company has to buy the subject matter from the seller of the subject matter of the financing, and the purchasing process of the financial leasing company also has a lot of room for maneuver. Although such a purchase is the seller designated by the SME, after all, it is the financial leasing company's capital, and the ownership of the subject matter belongs to the financial leasing company.
Therefore, the financial leasing company should consider itself as the main character of this business to participate in the supply chain operation. The financial leasing company should pay attention to the development of the relevant industry, understand the latest technological development of the industry, the performance characteristics of the facilities and equipment and so on. Compared with the financial leasing company, SMEs have certain advantages in specialized production, but their assets are generally inferior to the financial leasing company, plus the shareholders of the financial leasing company have a more complex background, there may be banks, guarantee companies, large enterprise groups and even government departments, many shareholders means that the financial leasing company has more resources, so that the enterprise will be more accurate when making decisions. The company's decision-making will be more accurate.
The financial leasing company can't just treat itself as a supplier of funds and a service provider for SMEs, but should position itself as a comprehensive service provider for SMEs. Not only provide financial support but also provide some consulting services. The future development direction of the financial leasing company will be in the direction of comprehensive SME service provider, providing various services to SMEs from equipment procurement, financing, consulting, etc., and assuming the role of supply chain integration service provider. In such a vision, the financial leasing business needs to be integrated with supply chain finance.
2. Supply chain finance can be extended to financial leasing business.
The development of supply chain finance is also very rapid, but its development also encounters various problems. For example, there are too many financing modes, and the financing participants are responsible for many procedures.
The bank's consideration of supply chain finance business is not for a single enterprise in the supply chain, but for the whole supply chain, especially the core enterprises in the supply chain. The characteristics of the supply chain determine the status of the core enterprises in the supply chain, and most of the member enterprises will have great problems in their survival once they leave the core enterprises.
These small and medium-sized enterprises (SMEs) have a very obvious core enterprise dependency syndrome. At present, China's economic development model is in urgent need of transformation, enterprises also need to be transformed, the core enterprises in the supply chain is even more so, to the establishment of the financial leasing company in the direction of the development of the supply chain core enterprises is a good choice. The core enterprise has strong assets, accumulated more resources, and a deeper understanding of the entire supply chain to set up a financial leasing company to develop new business areas.
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