Problems And Countermeasures On Export Credit Risk Management Of W Food Company

The domestic enterprises and the foreign company have more and more exchanges, since China has joined the WTO. Early, it is the export enterprises that have a closer relationship with foreign company. And now, the domestic enterprises want to expand the overseas market and seek a new growth point, so they have to communicate with foreign company.In our country, the products of most of the enterprises are in the primary products; this kind of product has a common feature that the labor value is not high. In the international market, many enterprises must have the advantage of price in order to obtain orders. However, because the impact of the RMB appreciation and domestic labor costs continue to increase, the price advantage has been greatly weakened, more and more domestic export enterprises have to give foreign customers of commercial credit, less so with higher safety payment in the fierce international competition. Commercial credit is expanding constantly, make the enterprise accounts receivable balance increasing. On one hand, it affects the company’s cash flow; on the other hand, because of the lack of this kind of risk management experience, makes the enterprise receivables uncollectible cases have occurred, seriously affecting the future development of enterprises. In this context, the research on the credit risk management of export enterprises is particularly important.This paper selected the company of W whose main product is ginger as the object of research. The company has a strong representation. The company occupies the important position in the export volume in ginger products. Along with the expansion of overseas market; it is also facing increasing receivables uncollectible risks, which have caused a certain impact on the future development of enterprises.Firstly, we introduce the research background that domestic export enterprises are facing more and more severe export credit risk, then we focus on the development of domestic and foreign theoretical research on credit risk management. We analysis the foreign and domestic risk assessment model, compare the difference of models so as to found the theory model that the most suitable for this study. Then this article emphasizes on the status of W food company and analysis the existing problems. By research the internal management system of W company, we can know its specific reasons for risk management. Finally, combined with the characteristics of W, we select "3+1" credit evaluation model of credit risk management system of the company, put forward the suggestion for the company to control the export credit risk. The end of the article summarizes the research conclusion and puts forward the improvement direction of research.