| Since the beginning of reform and opening up, China's foreign trade has made rapid development. More and more enterprises went into the business of foreign trade, and the trade scale also became larger and larger. Foreign trade became the main power to push China's economy to develop rapidly. In 2004, the total amount of China's foreign trade exceeded U.S. dollars one trillion, China became the third country which exceeds the volume in the world. In 2005, the total amount of China's foreign trade reached unprecedented U.S. dollars 1.42212 trillion. However, behind the prosperity, the risk level of China's international trade has been at a relatively high position, some datum indicates that the overseas receivables of China's export enterprises over U.S. dollars 100 billion, and the foreign debts is increasing at a rate of U.S. dollars 15 billion per year. The substantive overdue receivables and increasing bad debts seriously affected the economic benefits of export enterprises and the overall quality of China's foreign trade.The reason of China's huge overseas receivables are various, such as unreasonable product structure, low technological content and added value, non--normative business operations and low management level. The further reason is that most of the export enterprises have not established a credit risk management system. Before the business, there is no credit investigation to the foreign buyers; during the business, indulge the buyer without measure; if an overdue receivables is formed, how to recover it becomes a major challenge to export enterprises.As we all know, with the globalization of the world economy and the intense competition of international market, the worldwide buyer's market has been formed, the letter of credit will be replaced by D/P, D/A and O/A, which are based on the client's business credit. Those kinds of payment term create tremendous development opportunities as well as commercial credit risk. Even... |
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