Research on Mechanism and Operation Model of Logistics Finance

Logistics finance is an innovative development model of logistics and finance integration. This paper attempts to give a systematic review of the new service method by discussing the mechanism of logistics finance development, the business model and its main operation pattern, and points out that logistics finance is considered as the operation process to logistics industry which could effectively organize and regulate the monetary fund movement in logistics field by applying and developing various financial products. The business model of logistics finance can be divided into three categories: the prepayments financing based on transaction, stock-based logistics financing, logistics financing based on accounts receivables. The main operation types of logistics financing includes: prepayment for goods by the third-party logistics own money, prepayment for goods by bank funds, collection on delivery, pledge of warehouse, confirming warehouse business and goods pledge business. Logistics finance is an innovative service product, which can provide a good cooperation platform for logistics companies, financial institutions and enterprises in the supply chain to achieve win-win goal for all parties. A well development of logistics finance in China still relays on building a good market environment based on credit.