Innovative financing scheme by RFID

Abstract

This study proposes a collateral registration method of asset based lending (ABL) and evaluates parameters of supply chain management (SCM) operation that affect performance of ABL. Radio frequency identification has been deployed recently and there increases the application areas using its track and trace capability. ABL is one of them, in which company borrows money from financial service company (FSC) by using movable asset, such as inventory, as collateral. We proposed a registration method that is compatible to the current RFID standard, analyzed the SCM parameters that affect the loan condition of ABL, and summarized how companies design the SCM operation to take advantage of the financing scheme.