Vonechain-Supply Chain Finance

Supply Chain Finance Solutions

This solution is to build an alliance of trust system among multiple parties, such as bank or financial institutions, core enterprises, manufacturers, etc. based on blockchain technology in order to ensure real sharing of information among parties, enhance the effectiveness and safety of supply chain finance service, reduce financing cost of enterprise and achieve effective flow and resource sharing of supply chain funds.

Plan Advisory

Pain Point

1

Financing Difficulties and High Financing Cost among Small-Medium Enterprises

Financing difficulties frequently occur among small-medium enterprises, because these enterprises are lack of credit, have lesser collateralization like fixed assets, etc., opaque financial information and so on. Furthermore, not only low lending rate, financing cost of these enterprises is also higher than the average lending rate of bank by 3.6%.
2

Development of Core Enterprises is Affected by Supply Chain Enterprise

Suppliers’ high financing cost will cause price of raw materials increases, quality of original accessories decreases and indirectly result in weakening of industrial competitiveness among core enterprises. On the other hand, dealers’ high financing cost will also transfer to commodity price and thus reduce the willingness of dealers in expanding operations. All these circumstances are not beneficial to the industrial competitiveness of core enterprises.
3

Low Participation among Core Enterprises

Core enterprises are harder to enjoy benefits from supply chain finance service. Moreover, difficulties in carrying out data synchronization because of lengthy supply chain and high participation cost also lead to low willingness among core enterprises in helping small-medium enterprises to loan.

Plan Advantages

Achieve Inclusive Finance
Break the Limitation of Traditional Mode
Establish Multi-Party Trust Mechanism
Super High Level of Secure Encryption

Achieve Inclusive Finance

Alliance enterprises can exchange information in supply chain and share multi-party resources to solve financing difficulties of small-medium enterprises in supply chain.

Break the Limitation of Traditional Mode

Via blockchain technology, information is interconnected, transparent, and the whole transaction process is visible to everyone. It also breaks the limitations of credited person, financing tools and region in traditional supply chain finance.

Establish Multi-Party Trust Mechanism

Weaken centralization, distributed storage, solve the risks of asymmetric, opaque and tampered information, strengthen trust between different enterprises and agencies.

Super High Level of Secure Encryption

Encryption design for all transaction data, achieve anti-tampering of data and prevent damage or loss of ledger by introducing blockchain technology.

Scheme Structure

Set up supply chain finance service platform based on bottom layer of blockchain technology and lead by core enterprises. All real data of supply chain participants, such as core enterprises, dealers, suppliers, etc. will be transferred on chain to innovate passage and increase efficiency of clearing and settlement among enterprises. Various types of financial platforms will be introduced to provide financing service. Settlements’ certificate cannot be tampered and must be kept forever in order to facilitate healthy development of enterprises in supply chain.