Analysis of Factoring Business Model Based on Supply Chain Finance

Abstract

As a typical form of supply chain finance, factoring helps solve the financing difficulty of SMEs. With the rapid development of supply chain finance and blockchain, factoring has more development opportunities with constantly emerging innovation models. In summarizing the development of the factoring business in China, this paper focuses on the comparative analysis of the business models of forward factoring, reverse factoring, “1 + N + 1” factoring, and their applicable situations. The main conclusion is that forward factoring is applicable to the backward supply chain, whereas reverse factoring is also applicable to the forward supply chain.