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Chapter 3 Abstract (Academic English Translation)

Chapter 3: Analysis of Financing Difficulties Faced by Cross-Border E-Commerce SMEs—A Case Study of Hangzhou Yiwu Trading Co., Ltd.

Drawing on the theoretical framework established in Chapter 2, this chapter presents an empirical investigation into the financing predicaments confronting small and medium-sized enterprises (SMEs) engaged in cross-border e-commerce, with particular reference to the case of Yiwu Trading Co., Ltd., a Hangzhou-based SME specializing in the export of light industrial consumer goods through third-party platforms such as Amazon and AliExpress.

The analysis identifies four interrelated dimensions of financing difficulty. First, with respect to credit constraints, the case enterprise exhibits pronounced information asymmetry vis-à-vis traditional financial institutions. Its transaction records, which are dispersed across multiple e-commerce platforms and overseas payment channels, cannot be effectively consolidated into a credible credit profile, resulting in a bank credit rating of B and an approved credit line of merely RMB 500,000—substantially below its annual working capital requirement of approximately RMB 8 million. Second, regarding collateral deficiencies, the enterprise's principal assets comprise intangible resources, including platform store rankings, overseas warehouse inventories, and accounts receivable denominated in foreign currencies, none of which are conventionally accepted as eligible collateral under prevailing banking practice. Third, the chapter examines the structura