# Granting analysis of the credit financing of the platform-type highway transportation supply chain

## TL;DR

This paper studies credit financing in digital highway transportation supply chains, focusing on optimal credit lines and profit maximization.

## Contribution

It introduces a dynamic credit model using transaction credit and interest rates for platform-based financing in transportation.

## Key findings

- Credit lines and profits increase with transaction credit and interest rates in both financing modes.
- A two-dimensional credit matrix is proposed to guide financial institutions in credit financing.
- The model uses Highway Freight and Logistics Prosperity Indices for dynamic early warning values.

## Abstract

Against the background of digital development, this study’s research object is the platform-based highway transportation supply chain. It also analyzes two modes of supply chain financial credit financing, namely, upstream, and downstream enterprises of the platform, and network freight platform as the main financing body. Notably, the financial provider sets up a transaction credit based on the principle of business truth, and closed-loop transactions, determine the upper limit of the credit line based on the principle of financing self-compensation, build the expected profit maximization model, and establish the optimal credit line. Combined with the Highway Freight Index and Logistics Prosperity Index, the dynamic early warning value is established for the financing mode, where the platform as the main financing body. Through numerical analysis, the credit line and expected profit increase with the transaction credit, expected freight volume, and credit interest rate under the two modes, and the increase deriving from the credit interest rate is more significant. Finally, this paper describes the two-dimensional credit matrix of the financing subject via transaction credit and credit interest rate, which provides an intuitive credit reference for financial institutions to conduct the credit financing of the platform-based highway transportation supply chain.