Proceedings of the 4th International Conference on Economic Management and Big Data Applications, ICEMBDA 2023, October 27–29, 2023, Tianjin, China

Research Article

Research on Commercial Factoring Settlement Risk Based on Blockchain Technology

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  • @INPROCEEDINGS{10.4108/eai.27-10-2023.2341944,
        author={Yuping  Zhou and Ruolin  Hu},
        title={Research on Commercial Factoring Settlement Risk Based on Blockchain Technology},
        proceedings={Proceedings of the 4th International Conference on Economic Management and Big Data Applications, ICEMBDA 2023, October 27--29, 2023, Tianjin, China},
        publisher={EAI},
        proceedings_a={ICEMBDA},
        year={2024},
        month={1},
        keywords={blockchain technology; commercial factoring; settlement risk; smart contract; distributed ledger},
        doi={10.4108/eai.27-10-2023.2341944}
    }
    
  • Yuping Zhou
    Ruolin Hu
    Year: 2024
    Research on Commercial Factoring Settlement Risk Based on Blockchain Technology
    ICEMBDA
    EAI
    DOI: 10.4108/eai.27-10-2023.2341944
Yuping Zhou1, Ruolin Hu1,*
  • 1: Wuhan University of Technology
*Contact email: 2474637784@qq.com

Abstract

The "Regulations on Local Financial Supervision and Administration" promulgated by the People's Bank of China in 2022 emphasizes the importance of preventing risks in commercial factoring. However, due to the information asymmetry of the participants and the limited rationality of the business personnel, the default rate of commercial factoring settlement is still rising year by year, which brings huge losses to the factoring. At the same time, the advantages of blockchain technology such as on-chain data sharing and information whole-chain leaving can make up for the shortcomings of traditional settlement methods. Therefore, the research on commercial factoring settlement risk based on blockchain technology has theoretical value and practical significance. Based on the supply chain risk management theory, this paper analyzes the manifestations and causes of commercial factoring settlement risk by using the transaction cost theory, builds a commercial factoring settlement process based on blockchain technology, explores how to resolve the risk of quota approval, repayment credit risk and personnel operation risk by blockchain technology, and finally puts forward corresponding countermeasures and suggestions. The research results show that blockchain technology can optimize the existing settlement system of commercial factoring, prevent settlement risks, and improve the efficiency of settlement business.