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Can factoring business alleviate the seasonal impact on agricultural supply chain enterprises?

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  • Yao, Dingjun
  • Yan, Kai

Abstract

The impact of seasonal shocks on China's agricultural supply chain is not well understood, as they pertain to the capital efficiency of small- and medium-sized enterprises. Because they are crucial to national strategy and social progress, we thoroughly investigate upstream and downstream enterprises in this context in terms of their financial indicators using a detailed multilayer double-market nested game. Focusing on receivables recovery pressure and average real rate of return, our model simulates three conditions: no financing, supply chain financing, and supply chain factor financing. The results highlight the potential effects of shocks on enterprise capital utilization rates, revealing that factoring can effectively reduce this impact and help maintain high capital utilization efficiency.

Suggested Citation

  • Yao, Dingjun & Yan, Kai, 2025. "Can factoring business alleviate the seasonal impact on agricultural supply chain enterprises?," International Review of Financial Analysis, Elsevier, vol. 98(C).
    • Handle: RePEc:eee:finana:v:98:y:2025:i:c:s1057521924008238
    DOI: 10.1016/j.irfa.2024.103891
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