Cross-Border Trade Financing Model for Textile SMEs Based on Blockchain: Taking the Confirmation of Accounts Receivable of Fabric Exporters in the Yangtze River Delta as An Example

Yun Li, Yangzi Zhang

Article
2026 / Volume 9 / Pages 532-548
Received 28 May 2025; Accepted 21 July 2025; Published 5 March 2026
https://doi.org/10.31881/TLR.2026.532

Abstract
To address the financing challenges faced by small and medium-sized enterprises (SMEs) in the textile industry, particularly in the processing and trade of natural fiber products such as cotton and yarn, this study proposes an innovative blockchain-based cross-border trade financing model to promote the sustainable development of textile manufacturing. The model integrates Radio-Frequency Identification (RFID) technology with Internet of Things (IoT) devices, embedding tracking tags at the initial stages of textile production, such as the weaving process, to achieve full digital traceability from textile raw materials to exported finished products. A comparative case study of 10 textile enterprises in China’s Yangtze River Delta region demonstrates that this model significantly reduces the financing cycle from an average of 18–25 days to just 5–7 days. Its core value lies in shifting the foundation of trust from corporate reputation to verifiable, tamper-proof transaction data, which meticulously records key textile processing parameters like yarn specifications, fabric structure, and processing flows. This study not only confirms a viable technological pathway for solving the financing problems of textile SMEs but also presents a new application for textile materials in supply chain verification and management.

Keywords
textile industry, blockchain, trade financing, sustainable development, textiles