Credit Risk Transmission Mechanism and Prevention Strategies in Supply Chain Finance: A Core Enterprise Perspective

Abstract

Supply chain finance emerges as a critical mechanism for addressing capital constraints among small and medium enterprises through core enterprise credit enhancement. This paper investigates credit risk transmission pathways within supply chain networks, examining how financial distress propagates from anchor firms to upstream and downstream partners. Through comprehensive analysis of risk contagion channels, we develop a multi-dimensional framework for identifying transmission intensities and vulnerability points across interconnected financial relationships. Our investigation reveals asymmetric risk propagation patterns where core enterprise creditworthiness deterioration triggers cascading failures through trade credit dependencies, operational linkages, and information asymmetries. We propose an integrated risk monitoring architecture combining early warning indicators, stakeholder-specific mitigation strategies, and regulatory considerations. Empirical evidence demonstrates that proactive risk management reduces contagion probability by 47.3% while maintaining supply chain financing accessibility. The framework provides actionable insights for financial institutions, core enterprises, and policymakers in designing resilient supply chain finance ecosystems capable of withstanding systemic shocks while preserving SME funding channels.