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Academic Journal of Humanities & Social Sciences, 2019, 2(3); doi: 10.25236/AJHSS.040066.

Financing Decision Analysis of Small and Medium-sized Transportation Enterprises Based on Freight Factoring and Centralized Procurement


Xinyi li

Corresponding Author:
Xinyi li

School of Management, Shanghai University, Shanghai, 200444, China


In the modern logistics environment, small and medium-sized transport enterprises are easily constrained by capital because of their short, frequent and fast cash flow demand and the occupation of funds resulting from the purchase of transport vehicles. However, small and medium-sized transport enterprises can not provide enough fixed assets for pledge, resulting in banks or other financial institutions reluctant to lend, prudent or even not to lend. Multi-level principal-agent relationship is formed in the middle-level subcontracting business model of transport supply chain. At the same time, the uneven distribution of resources in the multi-level makes the bargaining power of the main body decline step by step. However, freight factoring and centralized procurement, as the common financing mode in the transport supply chain, can alleviate the financial pressure of small and medium-sized transport enterprises. Based on the supply chain composed of suppliers, retailers, transportation enterprises and transportation platforms, this paper establishes a financing decision model under freight factoring and centralized procurement mode. Through numerical simulation, it is found that under the same freight level, small and medium-sized transportation enterprises prefer to choose centralized procurement financing mode.


freight factoring; centralized procurement; supply chain finance; financing of small and medium-sized enterprises; factoring discount rate

Cite This Paper

Xinyi Li. Financing Decision Analysis of Small and Medium-sized Transportation Enterprises Based on Freight Factoring and Centralized Procurement. Academic Journal of Humanities & Social Sciences (2019) Vol. 2, Issue 3: 18-23. https://doi.org/10.25236/AJHSS.040066.


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