Providing a Model for Financing Small and Medium-Sized Enterprises (SME) in Supply Chain

Authors

1 Faculty of management and Accounting. Allameh Tabatabai University. Tehran. Iran

2 Faculty of management and Accounting. Allameh Tabataba’i University. Tehran. Iran

Abstract

Due to the limited financing methods of a Small and Medium-Sized Enterprises (SME), choosing the financing method of this type of enterprises is very important for providing liquidity and profitability, so this research presents a model of financing a small and medium manufacturing enterprises based on factoring. The accounts receivable are based on the company's financial and physical flows with the supply chain components, including the bank and the buyers of its products. In this study, in contrast to traditional financing methods that have been considered without considering the company's position in the supply chain, an attempt has been made to develop a mathematical planning model for financing a small and medium manufacturing enterprise in the supply chain by considering both physical and financial dimensions. And be presented in the context of a holistic and systematic approach. In this research, based on the development-applied approach, the model is presented and in order to solve it, goal programming is used and to cover the uncertainty conditions, interval planning is used. The results of the research show that the financing method is superior to the traditional loan-based financing method in terms of generating profit and achieving the desired liquidity.

Keywords