Abstract: Pledge by warehouse receipts for small and medium enterprises stimulates inventory circulation,efficiently releases fund pressure,and has been widely used in the industry.This paper studies the core indicator of risk controls in that business,i.e.loan-to-value ratios.Considering the endogenous default for the retailer in supply chain and uncertain demand,by establishing a single-cycle new sboy model,reordering decisions made by retailers are explored.On that basis,dynamic game theory and VaR method are used to investigate decisions of loan to value ratios in two cases: only seeking maximum profit and weig hing risk and profit.Finally,optimal decisions for seeking different goals are got by model analysis and numerical simulation,which highlights the important role loan-to-value ratios play in the risk management of pledge by warehouse receipts.

Key words: small and medium enterprises, logistics finance, pledge by warehouse receipts, loan-to-value ratios