Author(s)

Yu Cheng, Zihui Li

Corresponding Author

Yu Cheng

ABSTRACT

The scientific pricing of supply chain finance instruments is related to the improvement of the future core competitiveness of commercial banks and the further exploration of market potential. By using the pricing method of relationship-based loans for reference, this paper starts from the perspective of long-term cooperation between commercial banks and enterprises, considers the excess economic profits that may be generated by multiple sales of products, discounts the profits of enterprises currently in the supply chain by adopting a uniform distribution method, and then adds the present value to the pricing of supply chain finance instruments to develop a more favorable price. This paper also provides advice for commercial banks on how to increase market share in supply chain finance services.

KEYWORDS

Relationship-Based Loans, Supply Chain Finance, Pricing of Loans