Logistics finance is a financial business that provides financing, settlement, and other services for the logistics industry. It is accompanied by the development of the logistics industry. There are three main entities involved in logistics finance: logistics companies, customers, and financial institutions. Logistics companies and financial institutions unite to provide funds for capital-requiring companies. The development of logistics finance has very urgent practical needs for these three parties. Logistics finance is becoming an important financial business for domestic banks and gradually shows its role. As far as financial business is concerned, the function of logistics finance is to help financial institutions expand the scale of loans to reduce credit risks, and to assist financial institutions in disposing of some non-performing assets and improve the assessment of pledged services and other advisory services.
Solve financing difficulties:
In the trade supply chain, because of its strong position, core enterprises with strong competitiveness and large scale tend to demand strict requirements for upstream and downstream supporting enterprises in terms of terms of delivery, prices, and account terms, which in turn cause huge losses for these enterprises. Pressure, it is difficult to finance from banks, resulting in a very tight capital chain, the entire supply chain imbalance, and the emergence of logistics finance is to solve these problems for the financing of these enterprises.
From the procurement of raw materials to the production of intermediate and final products, the products are sent to consumers by the sales network and the suppliers, manufacturers, distributors, retailers, and end users are integrated.