Study On Credit Policy And Accounts Receivable Management Of F Enterprise Groups

After30years of reform and opening up, China’s market economy has been ahigh-speed development. The credit economy is a result from highly market-oriented,relying on credit, and is inevitable product while market economy developing tocertain stage. Credit economy has a huge and far-reaching role in expanding marketsize and financial scale, reduce the cost of circulation, expanding employment, openinformation, standardizing market economic order and many other aspects. Theeconomies in Western countries, especially the large and vibrant economy in USA,are largely benefit from then developed and perfect system of credit. However, inChina, many companies do not care about credit performance. If such situationcontinues, it will affect the steady and healthy of China’s market economic badly.This thesis begins with the problems of China’s accounts receivablemanagement, finding that the root causes of past due account receivable and baddebt is due to lack of credit management. And then, the thesis states the necessary forenterprises to establish the credit management as well as the principle of creditpolicy, which will play an important function in credit limit approval, effectivemanagement of accounts receivable, and will avoid the past due account receivableseroding corporate profits.Lastly, this thesis will give an actual case of F Group Company about status andpractices in credit and receivables management, sum up advanced managementconcepts from other enterprises, analysis the problem, propose specific improvementproposals and programs, and provide useful inspiration for other Group’s corporatein the credit and receivables management.A good credit circumstance is the basis for credit economic development.Strengthening corporate credit management, establishing enterprise managementsystem to meet the requirement of modern market economy are important and urgenttasks of developing the socialist market economy in China.