| L Auto-part Corporate, an unlisted small and medium Sino-foreign joint venture, cited by the author in this paper, located in an auto-oriented province in central China, boasts a leading stance in home market, big quota of whose finished auto parts are mainly supplied to several car manufacturing tycoons in China, besides a small portion of which are exported abroad. Being set in an opportunity for development, L Corporate has to accept the credit transactions proposed by buyers, namely the car manufacturing tycoons, for the sake of maintenance of buying and selling. In the past few years, L Corporate has been feeling the receivables themselves and the costs caused by management of receivables are unbearable.In 2010, owing to three commercial banks'promotion of their "accounts receivable secured financing products", L Corporate accepted three banks'promotion, planning to choose one bank from three as a sponsor. By means of inquiry, the author discovered the background of the products of kind is "trade finance", which takes aim at the whole supply chain, and provides financial service amid the different links of downstream. The "trade finance" mainly includes financial service based on the inventory, based on the accounts receivable, and based on the deposit prepaid. Furthermore, the financial service based on receivables is habitually subdivided to three sub-modes: namely pledged loan, factoring, and backed securitization.After respectively investigating two blue prints custom-made by two of three banks for L Corporate, L Corporate's board resolved setting alternative patterns embracing pledged loan as well as factoring based on receivables. As a matter of fact, the pledged loan and the factoring based on receivables are approximate. However, the pledged mode has incapability of polishing any business statement, while the factoring mode is qualified to polishing the business statement by means of turning "accounts receivable" into "real revenue" after transferring the accounts receivable from L Corporate to the factors.After comparing the two sorts of supervision items from Bank A and Bank B, especially focusing on the threshold value of rating sequence of the suppliers along with accounts receivable age, and comparing two banks' quoted prices, L Corporate chose Bank A as factor.The end of the paper witnessed that the author came up with three sorts of proposals respectively for factors(namely commercial banks), the authorities concerned, and suppliers(namely small and medium enterprises which bid for factoring ).Explicitly speaking: (1)This author suggested some commercial banks which innovated "accounts receivable secured financing products" organize all sales account managers from head office to frontline staff to learn from bank A cited in this paper.(2)At the same time, the author suggested the authorities concerned in China put forward the corresponding measures to perfect approaches to fight the counterfeit, false, fake, and inferior auto parts, and unremittingly mobilize more forces to fight them.In addition, the author suggested the authorities concerned should enhance the construction of our credit reporting system, particularly urge the construction of credit reporting system concerning small and medium enterprises, and develop the reputation rating system for the small and medium enterprises as well as owners, so that the banks or other investing organizations could quickly control overall and true business information and credit standing with respect to small and medium enterprises, which contributing to reduce financing transaction costs of small and medium enterprises.(3)The author also suggested auto-part association strengthen self-discipline behaviour, and formulate feasible industry norms to restrain trade, by means of which to improve the quality of enterprise clusters, so as to achieve qualification of enterprises bidding for receivable financing service, synchronous enhancement of the commercial banks' confidence which start the business. |
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