Author(s)

Yifan Guo ¹, Xiaotong Du ¹, Ping Yu ¹, Yixuan Guo ¹

Affiliation(s)

¹ Swinburne College, Shandong University of Science and Technology, Jinan, China

Corresponding Author

Ping Yu

ABSTRACT

Reverse factoring, applied by the large and credit-worthy core enterprises, can help the seed and fertilizer suppliers in the agricultural supply chain receive finance from accounts receivable, thus activating and releasing the capital flow in the supply chain. The risks of reverse factoring mainly come from credit risks. Therefore, risk prevention strategies are proposed from three aspects: establishing a credit evaluation system for the whole supply chain centered on the core enterprise, relying on the digital agricultural supply chain system, and strengthening the authenticity review and special account management of accounts receivable.

KEYWORDS

Commercial Factoring; Reverse Factoring; Supply Chain Finance; Credit Risk

CITE THIS PAPER

Ran Liu, Baoquan Li, Analysis on the Impact and Effect of China's Foreign Direct Investment on Laos' Industrial Structure. Financial Engineering and Risk Management (2025) Vol. 8: 143-149. DOI: http://dx.doi.org/10.23977/ferm.2025.080119.

REFERENCES

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[3] Li Guangrong. Research on the Causes of Credit Risk in Agricultural Supply Chain Finance: System Framework and Empirical Analysis – Based on 780 Survey Data from Five Provinces and Regions in the Middle and Upper Reaches of the Yellow River [J]. Theory and Practice of Finance and Economics, 2020, 41(3): 17 - 24. 
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