Author(s)

Yuying Li ¹, Bohan Liu ¹, Ping Yu ¹, Jiarui Guan ¹

Affiliation(s)

¹ Department of Finance and Economics, Shandong University of Science and Technology, Jinan, China

Corresponding Author

Ping Yu

ABSTRACT

Reverse factoring solves the financing problem of SME suppliers through the higher reputation of the core firm in the supply chain. A two-stage three-party supply chain model is constructed and optimized, from which find that reverse factoring can not only mitigate the financing difficulties of SME, but also improve the overall efficiency of the supply chain. The risk of reverse factoring mainly comes from the credit risk of the core enterprise, the countermeasures are proposed to prevent the credit risk.

KEYWORDS

Commercial factoring, Reverse factoring, Supply chain finance, Receivables financing, Credit risk

CITE THIS PAPER

Yuying Li, Bohan Liu, Ping Yu, Jiarui Guan, Research on Factors' Risk Management on Reverse Factoring. Financial Engineering and Risk Management (2024) Vol. 7: 172-176. DOI: http://dx.doi.org/10.23977/ferm.2024.070125.

REFERENCES

[1] Yongwang, G., Guobin, D. (2016) Analysis on the Risk Factors and Countermeasures of China's Current Commercial Factoring.China International Finance and Economics (Chinese and English), 19:73+77.
[2] Zhongjie, S., Hui, Y. (2018) Supply Chain Cooperation in Reverse Factoring under Financial Constraints.China Management Science, 12:113- 123.
[3] Zhongjie, S. Hui, Y. (2020) Robust Decision Making for Reverse Factoring in Supply Chain with Demand Disturbance. China Management Science, 7:89- 100.
[4] Panos Kouvelis, Fasheng Xu. (2021)A Supply Chain Theory of Factoring and Reverse Factoring. Management Science, 10:6071-6088.
[5] Jie, Z., Yuehui, L., Yanhui, T. (2023) Research on the decision-making model of reflective factoring financing for small and medium-sized agricultural technology enterprises. Journal of north china institute of aerospace engineering, 1:22-28.

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