Analysis of the Cost and Benefit of the Combination Product of Chattel Financing and Factoring

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Hong Zhang
Hong Zhang
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Li Zhou
Li Zhou
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Dongxu Chen
Dongxu Chen
α Beijing Wuzi University

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Analysis of the Cost and Benefit of the Combination Product of Chattel Financing and Factoring

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Abstract

First we introduced business processes of the chattel financing and factoring financing mix. Then we built a model of costs and benefits from the perspective of banks and SMEs, and discussed the main factors affecting net profits of both supply and demand in the supply chain finance portfolio of products. At the same time we compared the difference from net profits of both supply and demand in the supply chain finance portfolio of products, finding that the bank’s net income is higher than the combination of a single supply chain finance product, but depending on the gap between potential shortage costs of a single product chattel and the financing costs plus insurance costs. Finally, we made use of dynamic game theory and game equilibrium point between the two sides, and assisted in decision-making with models.

References

6 Cites in Article
  1. Hofman (2005). Supply Chain Finance: some conceptual insights.
  2. Udell Bergera (2006). A more complete conceptual framework for SME finances.
  3. Han-Christian,Moritz Pfohl,Gomm (2009). Supply Chain Finance: Optimizing Financial Flows in Supply Chains.
  4. F Mathis,J Cavinato (2010). Finance the Global Suppply Chain: Growing Need for Management Action.
  5. Erik Hofman (2009). Inventory financing in supply chains.
  6. Ralf Seifert,Daniel Seifert (2011). Financing the Chain.

Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

Data Availability

Not applicable for this article.

How to Cite This Article

Hong Zhang. 2015. \u201cAnalysis of the Cost and Benefit of the Combination Product of Chattel Financing and Factoring\u201d. Global Journal of Management and Business Research - C: Finance GJMBR-C Volume 15 (GJMBR Volume 15 Issue C6): .

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GJMBR Volume 15 Issue C6
Pg. 11- 20
Journal Specifications

Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

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GJMBR-C Classification: JEL Code: G20
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v1.2

Issue date

July 20, 2015

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en
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First we introduced business processes of the chattel financing and factoring financing mix. Then we built a model of costs and benefits from the perspective of banks and SMEs, and discussed the main factors affecting net profits of both supply and demand in the supply chain finance portfolio of products. At the same time we compared the difference from net profits of both supply and demand in the supply chain finance portfolio of products, finding that the bank’s net income is higher than the combination of a single supply chain finance product, but depending on the gap between potential shortage costs of a single product chattel and the financing costs plus insurance costs. Finally, we made use of dynamic game theory and game equilibrium point between the two sides, and assisted in decision-making with models.

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Analysis of the Cost and Benefit of the Combination Product of Chattel Financing and Factoring

Li Zhou
Li Zhou
Hong Zhang
Hong Zhang Beijing Wuzi University
Dongxu Chen
Dongxu Chen

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