Financing Strategy and its Optimization for Small and Medium-Sized Agricultural Machinery Manufacturers Under Government-Enterprise Financing Platform

A government-led, state-owned enterprise-built government-enterprise financing platform had emerged to solve the problem of complex financing for small and medium-sized agricultural machinery enterprises. This study considered a two-tier supply chain consisting of capital-constrained agricultural machinery manufacturers and distributors. Exploring the operational strategies of financial institutions and agricultural machinery manufacturers under the government-enterprise financing platform. This paper obtained the optimal decision through the model solution, parameter sensitivity analysis, and the optimal choice was derived by comparing the traditional bank financing model (Model B) and the government-enterprise platform financing model (Model G). The results showed the following: First, the optimal decisions of members in the agricultural machinery supply chain vary with different financing models. Second, in both financing models, supply chain members' revenues were positively correlated with product success rates, and changes in initial capital did not affect the returns of distributors. Still, they were positively related to manufacturers only when product success exceeded a certain threshold. Third, when manufacturers' initial capital and government subsidies were low, and the production costs were relatively high, model G was more suitable for the whole agricultural machinery supply chain.