Abstract: Supply chain finance is a financial innovation service for the supply chain. This paper analyzes the bank's loan to value ratios when the retailer pledging his order contract in a newsboy's supply chain which consisting of a supplier and a retailer (or a newsboy). Meconuhile the paper incorporates some decisions of the enterprises into the loan to value ratios model of bank which controlling risk base on downside model, and models the supply chain decisions' influence on the value of pledging contract. Firstly, the analytic result of loan to value ratio of the bank is solved. Secondly, the paper analyzes the relations of the product's surplus, the supplier's wholes price or the return policies with the loan to value ratios and proves their value space under the conditional factors.

Key words: supply chain Finance, loan to value ratios, supply chain contract, newsboy model