ABSTRACT
Logistics financial business is the combination of finance and logistics, which was developed in 2400 BC, when the Mesopotamian area saw grain warehouse receipts. And in the earliest UK, the circulation of paper money was silver warehouse receipt of payment. Logistics business in China experienced rapid development since China’s accession to the WTO. It was once considered by companies as “the third profit source”, and grew at an annual rate of 16% to 25%. This is mainly the warehousing management pattern of traditional enterprises, such as the national large-scale storage and transport enterprises and sino-foreign joint venture enterprise. However, as the market competition is increasing fiercely and the third party logistics enterprise’s profit has dropped to 2%–3%, the enterprise faced an uncertain future. In this situation, many logistics companies began to explore the third party logistics business model and put it into use. Logistics service gradually extended to other aspects of the value chain such as finance, e-commerce, marketing and other derivative services. Among them, the logistics financial service is the combination of logistics flow and cash flow, which is one of the important logistics derivative services.
