{"status":"ok","message-type":"work","message-version":"1.0.0","message":{"indexed":{"date-parts":[[2026,5,3]],"date-time":"2026-05-03T03:07:07Z","timestamp":1777777627259,"version":"3.51.4"},"reference-count":16,"publisher":"Emerald","issue":"3-4","content-domain":{"domain":[],"crossmark-restriction":false},"short-container-title":[],"published-print":{"date-parts":[[2017,12,21]]},"abstract":"<jats:p>In supply chains where there is a smaller channel partner with tight budget constraints, flow of materials, products and cash through the channel can suffer significantly, and as a result, all supply chain participants can be hurt. In order to remedy this problem, in recent years, some larger companies have been implementing innovative contracting solutions aimed to ease the financial frictions in the supply chain. In this paper, we present several examples of emerging solutions employed in practice, which involve larger firms providing guarantees in various forms to reduce financing costs for smaller partners, and discuss some recent results from the literature studying these solutions. The main example we discuss is Buyer Intermediated Financing, studied in Tunca and Zhu (2017), where a large buyer can significantly reduce its suppliers\u2019 financing costs by guaranteeing the repayment of suppliers\u2019 loans. We discuss the insights from our study on why and how such a scheme can reduce wholesale prices, increase order fill rates, and create a win-win for suppliers and retailers. In addition, we discuss future research directions on financial guarantees by large supply chain partners based on newly emerging practices.<\/jats:p>","DOI":"10.1561\/0200000066","type":"journal-article","created":{"date-parts":[[2017,12,21]],"date-time":"2017-12-21T05:58:51Z","timestamp":1513835931000},"page":"289-304","source":"Crossref","is-referenced-by-count":1,"title":["Improving Channel Efficiency through Financial Guarantees by Large Supply Chain Participants"],"prefix":"10.1108","volume":"10","author":[{"given":"Tunay I.","family":"Tunca","sequence":"first","affiliation":[{"name":"University of Maryland Robert H. Smith School of Business, ,","place":["USA"]}],"role":[{"role":"author","vocabulary":"crossref"}]},{"given":"Weiming","family":"Zhu","sequence":"additional","affiliation":[{"name":"University of Navarra IESE Business School, ,","place":["Spain"]}],"role":[{"role":"author","vocabulary":"crossref"}]}],"member":"140","published-online":{"date-parts":[[2017,12,21]]},"reference":[{"key":"2026033113522514400_ref001","unstructured":"Arora, R.\n          \n          2017. \u201cAnother industry Amazon plans to crush is smallbusiness lending: Op-Ed\u201d. url: https:\/\/www.cnbc.com\/2017\/06\/16\/amazon-plans-to-crush-small-business-lending.html."},{"key":"2026033113522514400_ref002","first-page":"289","volume-title":"The Handbook of Integrated Risk Management in Global Supply Chains","author":"Caldentey","year":"2009"},{"key":"2026033113522514400_ref003","volume-title":"Case, IE Business School, Madrid, Spain","author":"Corsten","year":"2010"},{"issue":"2","key":"2026033113522514400_ref004","doi-asserted-by":"crossref","first-page":"491","DOI":"10.1093\/rfs\/hhl015","article-title":"\u201cTrade credit: suppliers as debt collectors and insurance providers\u201d","volume":"20","author":"Cunat","year":"2007","journal-title":"Review of Financial Studies"},{"key":"2026033113522514400_ref005","unstructured":"Dastin, J.\n          \n          2017. \u201cAmazon lent $1 billion to merchants to boost sales on its marketplace\u201d. url: https:\/\/www.reuters.com\/article\/us-amazon-com-loans-idUSKBN18Z0DY."},{"issue":"11","key":"2026033113522514400_ref006","doi-asserted-by":"crossref","first-page":"3111","DOI":"10.1016\/j.jbankfin.2006.05.001","article-title":"\u201cThe role of factoring for financing small and medium enterprises\u201d","volume":"30","author":"Klapper","year":"2006","journal-title":"Journal of Banking & Finance"},{"issue":"6","key":"2026033113522514400_ref007","doi-asserted-by":"crossref","first-page":"921","DOI":"10.1111\/j.1937-5956.2010.01211.x","article-title":"\u201cThe Newsvendor Problem and Price-Only Contract When Bankruptcy Costs Exist\u201d","volume":"20","author":"Kouvelis","year":"2011","journal-title":"Production and Operations Management"},{"issue":"3","key":"2026033113522514400_ref008","doi-asserted-by":"crossref","first-page":"566","DOI":"10.1287\/opre.1120.1040","article-title":"\u201cFinancing the newsvendor: Supplier vs. bank, and the structure of optimal trade credit contracts\u201d","volume":"60","author":"Kouvelis","year":"2012","journal-title":"Operations Research"},{"key":"2026033113522514400_ref009","unstructured":"McIntyre, G.\n          \n          2017. \u201cAnother industry Amazon plans to crush is smallbusiness lending: Op-Ed\u201d. url: https:\/\/www.fundera.com\/blog\/amazon-lending."},{"key":"2026033113522514400_ref010","doi-asserted-by":"crossref","DOI":"10.1515\/9781503619883","volume-title":"Foundations of stochastic inventory theory","author":"Porteus","year":"2002"},{"key":"2026033113522514400_ref011","first-page":"863","volume-title":"Journal of Finance","author":"Smith","year":"1987"},{"key":"2026033113522514400_ref012","volume-title":"SSRN 2183991","author":"Tanrisever","year":"2012"},{"key":"2026033113522514400_ref013","author":"Tunca","year":"2017"},{"key":"2026033113522514400_ref014","doi-asserted-by":"crossref","unstructured":"Tunca, T. and W.Zhu. 2017. \u201cBuyer Intermediation in Supplier Finance\u201d. Management Science. forthcoming. url: https:\/\/doi.org\/10.1287\/mnsc.2017.2863.","DOI":"10.1287\/mnsc.2017.2863"},{"issue":"3","key":"2026033113522514400_ref015","doi-asserted-by":"crossref","first-page":"842","DOI":"10.1016\/j.ejor.2014.10.052","article-title":"\u201cThe price of reverse factoring: Financing rates vs. payment delays\u201d","volume":"242","author":"Van der Vliet","year":"2015","journal-title":"European Journal of Operational Research"},{"key":"2026033113522514400_ref016","author":"Wu","year":"2014"}],"container-title":["Foundations and Trends\u00ae in Technology, Information and Operations Management"],"original-title":[],"language":"en","link":[{"URL":"https:\/\/www.emerald.com\/fttom\/article-pdf\/10\/3-4\/289\/11159020\/0200000066en.pdf","content-type":"application\/pdf","content-version":"vor","intended-application":"syndication"},{"URL":"https:\/\/www.emerald.com\/fttom\/article-pdf\/10\/3-4\/289\/11159020\/0200000066en.pdf","content-type":"unspecified","content-version":"vor","intended-application":"similarity-checking"}],"deposited":{"date-parts":[[2026,4,29]],"date-time":"2026-04-29T19:01:48Z","timestamp":1777489308000},"score":1,"resource":{"primary":{"URL":"https:\/\/www.emerald.com\/fttom\/article\/10\/3-4\/289\/1332667\/Improving-Channel-Efficiency-through-Financial"}},"subtitle":[],"short-title":[],"issued":{"date-parts":[[2017,12,21]]},"references-count":16,"journal-issue":{"issue":"3-4","published-print":{"date-parts":[[2017,12,21]]}},"URL":"https:\/\/doi.org\/10.1561\/0200000066","relation":{},"ISSN":["1571-9545","1571-9553"],"issn-type":[{"value":"1571-9545","type":"print"},{"value":"1571-9553","type":"electronic"}],"subject":[],"published":{"date-parts":[[2017,12,21]]}}}