The Study Of Risk Management Mode Of Accounts Receivable For Small And Medium-sized Merchandising Business

The accounts receivable of the business enterprise is always staying at a high level, because of fierce market competition and widespread credit marketing, and the risk management of accounts receivable becomes more important for the business and it becomes one of the considerations of evaluating a company's development potential. We need to gain an insight into the theory and practice of risk management of accounts receivable to prevail in a dynamic market. The risk management theory has been a concerned issue of business development research since its origination. People have conducted much related research about it from different dimensions. However, not too much effort has been given to the counterpart of small and medium-sized merchandising business.This study takes it as an opportunity to retrospect the history of domestic and abroad risk management of accounts receivable and analyze the applicability of various risk management modes of accounts receivable and gives a rough idea of establishing risk management mode of accounts receivable for small and medium-sized merchandising business with reference to the frame of domestic scholars'establishing risk management mode and considering the characteristics of small and medium-sized merchandising business and the present condition of risk management of accounts receivable, namely regulating normal process of risk management of accounts receivable and establishing independent credit risk management department and redefining its position in business organization. Then through analyzing a specific example, the study has innovational deliberation and application to risk management mode of accounts receivable in order to verify the correctness and applicability of the basic conception and conclusion in this study.The first chapter states research background, research purpose and significance, as well as content, structure and innovations of this study. It is of necessity and realistic significance discussing risk management of accounts receivable because domestic market economy system is underdeveloped and traditional management means is lagged and credit flaw of credit marketing between businesses is serious.The second chapter reviews mainly emphasis of risk management of accounts receivable overseas and trend and introduces domestic related research and comments. It is important theoretical basis and origin for case study discussing the characteristics of various methods and the applicable difference between businesses while reviewing related research. It gives references through investigating the application to small and medium-sized merchandising business of two kinds of two thorough credit management mode currently, namely whole process credit management mode and"3+1"credit management mode according to character of small and medium-sized merchandising business while introducing risk management mode of accounts receivable.The third chapter designs a suit of risk management mode of accounts receivable for small and medium-sized merchandising business in respect of process design and organizational structure design, referring to the well-developed risk management modes of accounts receivable. In the aspect of process design, this study emphasizes to take the characteristic of small and medium-sized merchandising business into consideration according to the principle of"whole process"of whole credit management mode and"3+1"credit management mode in order to better implement the function of"circular management". In the aspect of organizational structure design, the study emphasizes to establish independent credit risk management department responsible for credit management of business, at the same time, to correctly locate its rank and to complete risk management of accounts receivable cooperating with sales department and financial department.The fourth chapter analyzes emphatically risk management mode of accounts receivable for M Company. This study takes the M electronics Ltd. as research object and analyzes and designs and reforms its risk management mode of accounts receivable starting from its risk management policy of accounts receivable. The purpose is to better develop its risk management process of accounts receivable and related department setting, and to make process more explicit and scientific and to make management policy of accounts receivable more systematic and transparent. It can minimize credit risk and mitigate bad debt and avoid nonessential loss for business to establish independent credit management department and locate correctly its organizational rank and build up united risk management system from top to bottom and reduce management authority's unessential intervention and cultivate credit risk management personnel professional ability.The fifth chapter summarizes systematically risk management mode of accounts receivable for small and medium-sized merchandising business and points out the emphases and recommendations on following research. The chapter mainly summarizes the study and explicates that selective and innovative application of risk management mode of accounts receivable is very vital for small and medium-sized merchandising business to develop credit relation. Finally the study puts forward that future research focus will be allowed to embark from the different professional characteristic to verify the mode valid through the long-time track observation and the example research and long-time customer's credit data. The purpose is to find an actually theoretical and practice method to enlarge market quota and to strengthen risk management of accounts receivable and to maximize the profit for small and medium-sized merchandising business.Credit management is one of most important section of business management. Following with extensively adopting credit marketing, it becomes more important, even directly relates to business's life or death whether establishing harmonious credit relation and improving accounts receivable management condition or not between business and its customers. The study tries to find a nimble, applicable and operational risk management mode of accounts receivable as far as process design and organizational structure design are concerned, suit for small and medium-sized merchandising business on the basis of researching advance risk management theory and practice overseas and credit risk management mode for domestic big-scale business. And we tried to design a valuable and practical mode for numerous small and medium-sized merchandising businesses.The study emphasizes to locate correctly credit management department or personnel in order to maximize its function and lessen beneficial conflict and mutual interference between departments and to make risk management of accounts receivable more efficient. The study also emphasizes it is very important for promoting competition potential of small and medium-sized merchandising business to select rationally scientific and efficient risk management mode of accounts receivable.The study about this thesis not only may provide a kind of effective credit management mode of accounts receivable for small and medium-sized merchandising business in the circumstances of credit system reformation, but also may direct to establish and develop credit relationship between businesses and provide reference for other research relative in the field. Moreover, the author would like to see that the findings of this study can have certain propulsion for settling fierce"credit crisis"in the market competition and push forward gradually healthy and reasonable credit management situations.