This thesis is developed for a small enterprise in China, NingXiang ChangXing Tungsten Industrial Co, Ltd that has been engaging in a metal recycling business more than 10 years. The objectives of this thesis are to find out suitable financing solution for the company and possible improvement scheme for the improvement of operational capacity.

In the thesis, the main theories applied are: firstly, the supply chain management theory, which mainly focuses on the inventory management and the relationship management with suppliers and customers. Secondly, in part 5, the financing channels and methods the theory has applied. Thirdly, financing and accounting analysis theory are used in part 5 and 6 which are the fundamental of data analysis in part 7. I have mainly used the lecture materials of Tapani Hokkonen who is a lecturer in Supply Chain Management Programme in Hamk University of Applied Science. Financing channels for SMEs by Zhang Chao Yuan, as well, the third edition of financial accounting by David Alexander & Christopher Nobes, Google scholar has also been an important source.

The accounting and financing analysis are based on the financial data of NingXiang ChangXing Tungsten Industrial Co, Ltd. Part of the financing information has got from the conversation with managers and the account-ants of the company. The main analysis methods are accounting analysis of the balance sheet, income statement, as well the financing analysis of operational capacity indicators. The results of the data analysis show that the current assets of this company has a average increase of 84% yearly along by the soar of revenue, while the operational capacity has been gradually dropped during the past 3 years. By analysis, some other indicators, I conclude that the possible reasons for these could be the high inventory level and the slow payment from customers.

By consideration of financing possibility and the integration of supply chain management, I propose that NingXiang ChangXing Tungsten Industrial Co,.Ltd. apply the pledge of BADs as its low cost financing method, and start to reduce and control the inventory.