Journal of Risk Analysis and Crisis Response (JRACR) (Dec 2022)
Summary of Research on Order Financing Decision Optimization and Risk Management
Abstract
To alleviate the pressure of financing for small and medium-sized enterprises in my country, order financing has become one of the effective ways to solve the financing difficulties of China's small and medium-sized enterprises. Order financing is a kind of supply chain financing mode. Compared with traditional accounts payable financing, order financing advances the financing link, accelerates the capital turnover efficiency, and better solves the urgent demand for funds of small and medium-sized enterprises. This paper reviews the research status of order financing from three aspects: order financing model evolution, decision optimization, and risk management. Through combing the existing literature, it puts forward appropriate policy recommendations for the order financing model under the current development status, which will provide direction for the development of order financing in the future.
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