Research On Client Selection Of Credit Sale And Management Of Credit Sale

In the current economic and social environment, credit sale has become an important competitiveness means for enterprise, but enterprise must face the risk of credit sale. Risk of credit sale refers to the risk of loss in bad debts because the debtor can't pay the full trade accounts. Risk of credit sale is one of credit risk. It can be divided into uncontrollable credit risk and controllable credit risk. Uncontrollable credit risk is those irresistible factors of credit risk, such as the country's political risks, natural disaster risk, etc. Controllable credit risk can be controlled by raising the level of their own credit management. Because of the current domestic enterprises, the main virtue of credit management experience and subjective judgments, the lack of scientific and effective risk assessment methods and tools.According to corporate risk of credit sale assessment and management issues, this paper carries out some studies as following:Firstly, based on analysis of the features of credit sale, joint the management application of credit sale, under the Rough set theory, this paper construct a sytem of indicatoes of selection client for credit sale. Those indicatores come from financial ratios or no-financial ratio, and this paper calculate the weight of indicators by AHP, after that, it is easy to evaluate the credit sale risk by fuzzy comprehensive evaluation method.Secondly, this paper reseach on how to select the client of credit sale. On one hand, this paper unifies the characteristic of firm's credit sale, application multiattribute decision making method, proposed a kind of choice method for firm's customer of credit sale. Based on construction the evaluation model for credit sale risk with deviation maximization, the related financial data of the customer was analyzed, and the corresponding quantitative evaluation result was obtained; meanwhile the qualitative attributes were carried on analysis and processing. At last, the quantitative and qualitative evaluation results were unified, and carried on sorting and selection to the credit sale customer. On other hand, according to mufti-indicators of risk of credit sale assessment, based on optimization theory, this paper constructed a class of risk of credit sale assessment for minimize risk, and analyze the optimal weight.Thirdly, because credit risk assessment in the face of the credit data of small samples, nonlinear, high dimension, and so on. This paper use Support Vector Machine (SVM)to evaluate the risk of credit sale, evidence showed that the function of SVM can enhance the prediction accuracy.Fourthly, according to cost of credit sale, this paper analyze the relation of cost of credit sale and accounts receivable holdings, and obtain the optimal holdings in accounts receivable and the lowest credit costs in general analytical expression. This paper put forth the concept of Risk-Adjusted Return on Credit Sale (RARCS) and calculating method of RARCS. And set up by the risk-adjusted capital model of Credit Sale-Risk Return on Capital (CS-RROC), which can be enable return match risk.This study shows that credit risk assessment and management is complex system engineering. Besides the correct assessment of the theory and methods, enterprises must also be set up corresponding rules and regulations on credit risk management, these systems should include:investigation customer information, credit policy-makers factor analysis, credit period and the amount of the formulation, monitoring of accounts receivable with the return, accounts receivable financing, reduce bad debt losses and so on.