Optimal Strategies for Inventory Financing with Capital Constrained
CHAI Zhengmeng
DUAN Lili
Abstract：Considering the small and medium manufacturing enterprises holding the goods while borrowing money from the financial institutions for more output with the inventory financing, a logistics finance system consisting of a bank, a manufacturing firm (financing firm) and a logistics company is designed. In the light of the capital constraint and the endogenous default, a research is conducted respectively on the optimal interest rate and loan-to-value ratio of commercial bank, the optimal financing policy and the production policy of the manufacturing firm. It is indicated that the loan-to-value ratio and interest rate play an important role in the inventory financing with inventory financing as a kind of management method to achieve a win-win situation for all members.
Keywords：loan-to-value rationlogistics financecapital constraintinventory financing
Publication Date：2017-01-01
Online Publishing Date：2025-08-15(First online date of this platform, not the publication date of the document)
Pages：8( 44-50,64 )