The Effect of Non-financial Factors on Credit Level: An Empirical Study of Supply Chain Finance Based on E-commerce Platform

Abstract

Abstract. With the development of Internet finance, the traditional supply chain finance is being extended to financial service based on e-commerce. In this condition, except for the financial data that traditional credit evaluation focuses on, non-financial factors based on the Internet and e-commerce platform should also be considered. This paper adopted empirical research method, building the structure equation model to verify some key non-financial factors which influenced supply chain finance credit level. We demonstrated that the transaction credit of financing enterprise, e-commerce platform credit and other specific factors had positive impact on supply chain finance credit level. This article provided some references for the credit risk management of supply chain finance under the environment of Internet and e-commerce.

An integrated approach for modeling critical success factors for supply chain finance ecosystem

“…They concluded that information sharing, external collaboration, digitization and financial institutions are the factors that positively impact SC effectiveness. Fang et al. (2015), through their study of credit levels, enlisted a few nonfinancial factors of credit finance, but the study was confined to e-commerce platforms only.…”

“…(2020) studied SC collaborative factors, Nguema et al. (2021) studied the impact of SCF on SC effectiveness; Fang et al. (2015) and Xiao et al.…”

“…As multiple parties and multiple perspectives exist, the process of SC financing is affected by multiple factors, including qualitative and quantitative factors, macroeconomic and microeconomic factors and controllable as well as non-controllable factors (Alora and Barua, 2019;Fang et al, 2015;Marak and Pillai, 2018;Xiao et al, 2022). The factors may vary: organizational, financial, technological, etc.…”

“…Though CSFs play a significant role in determining the success of the SCM, minimal studies are observed to identify the CSFs for SCF. Ma et al (2020) studied SC collaborative factors, Nguema et al (2021) studied the impact of SCF on SC effectiveness; Fang et al (2015) and Xiao et al (2022) studied selected factors without considering other aspects. These studies identified a few factors affecting SCFE, but many factors, like the short-term solvency of client firms, macroeconomic factors like sectoral growth rate, were not considered.…”

Evolution of the Complex Partnerships between Banks and B2B e-Trading Platforms: A Theoretical Interpretation from the Chinese Market

“…erefore, electronic credit is combined into the credit rating process of the OL-SCF, acting as a reliable complement to creditworthiness of online SMEs [3,22]. e newly added rating indicators may include online exchange history (e.g., registration time), activity level (e.g., trading frequency and transaction amount), interaction intensity with partners (e.g., locations in the trading networks and supply chain stickiness), and customer satisfaction (e.g., online review) [3,[22][23][24]. Since such information is generally privately possessed by B2B platforms, it is a common practice that banks and B2B platforms work together as service providers in the OL-SCF business.…”