The Credit Management Of Trading Company

With Russia sounded the clarion call into the WTO, Global trade competition in the market has become further intensified. For wave at the trading company in China, how to take a series from the enormous pressure at home and abroad is crucial. In 1980s and 1990s, Chinese trading company was very successful, and was able to choose foreign customers, just as the current oil, and telecommunications monopoly. However, when the glory of national policy gradually removed 180-degree turn, as the policy changing from encouraging to limiting, all companies and even individuals can engage in foreign trade. With foreign competition is becoming increasingly fierce, customers do business by not only offering low price but also deliberately delayed payment deadline. Faced with these difficulties, trading companies must continuously upgrade their capabilities, to establish a series of risk prevention system including credit management.Credit management is the basis of market economy. Only by establishing of good credit management system can trading companies get out of difficulties caused by all kinds of credit problems. Trading company established credit management system can not only effectively prevent the trade risks, but also create more opportunities in order to get more customers and enhance competitiveness.This paper takes a trading company for example, through the analysis of the basic situation and main business processes to try to establish an internal credit management system in trading company. In conclusion and the establishment of the credit management system and after that, it can be extended to the general trade enterprises, so that the credit management system in a more practical and effective.