Analysis Of Export Credit Risk And Countermeasures For Shandong Province’s Small And Medium Sized Foreign Trade Enterprises

Small and medium sized Foreign trade-oriented enterprises(SMEs) have grown into a new force and have been playing an active role in promoting Chinese foreign trade and economic development. Shandong Province, as a large export province of China, have lots of large foreign trade-oriented SMEs that export in great volume every year, which contributes increasingly to economic development of Shandong province. But along with the growing export trade, risks in exporting are increasing, especially significant in export credit risk and overdue receivables of foreign trade enterprises continually mounts up, all of which affects the healthy and stable development of foreign trade enterprises.This paper studies the characteristics of Foreign trade-oriented SMEs, and undertake in-depth research in specific causes to export credit risks, and furthermore take accurate analysis on the credit risk problems confronted by foreign trade-oriented SMEs of Shandong Province, and seek for targeted credit risk management measures to help bate the influence of export credit risks to foreign trade-oriented SMEs and promote the healthy and sustainable development of export trade. The analysis incorporates comprehensively both quantitative and qualitative, theory and practice. And this paper gradually deepen in the research ranging from credit risks of the enterprise to the export credit risk, and then to the export credit risk confronted by the foreign trade-oriented SMEs, and last specifically to the foreign trade-oriented SMEs of Shandong Province, so as to strengthen the management on the export credit risk of the foreign trade-oriented SMEs of Shandong Province. It also places emphasis on the use of comparative analysis. In order to accurately analyze the causes to the export credit risk confronted by the foreign trade-oriented SMEs, this paper firstly analyses the practice of the management on export credit risk of the development countries, and then takes comparative analysis on the relatively low-risk-export and large-scale foreign trade enterprise with the foreign trade-oriented SMEs. Meanwhile, this paper further analyzes the export credit risk situation of the foreign trade-oriented SMEs of Shandong Province, according to the specific export commodity and the counterpart import countries and other specific circumstances of Shandong province.This paper argues that there are large export trade risks in export trade of the foreign trade-oriented SMEs of Shandong Province, which is partly relative to the small scale, the relatively high proportion of labor-intensive primary products, lack of bargaining power on the choice of the settlement instruments and so on, and also closely related to the failure in export credit risk management, not setting up independent credit risk management sections, extensive management on counterpart customers, abnormal lack of professionals, not standardized business processes. The author believes that the foreign trade-oriented SMEs will be able to effectively reduce the export credit risk, so as to ensure the healthy and stable development of enterprises, provided they attach importance to of export credit risks, establish independent credit risk management institutions, continuously improve their professional level of credit risk management on the export credit risk, make full use of reasonable risk transfer tools, effectively draw support from outside professional organizations, and actively take use of industrial cluster effect. This paper puts forward that the key to control the export credit risks is on their own, proposes that the foreign trade-oriented SMEs should set up the independent credit risk management institutions, and implement scientific management on export credit risk. In the analysis process, we found the export volume of Guangrao County Shandong Province,as the export base of rubber tires of our country, is very large, but the business undergo less export credit risk because of the cooperation and taking good use of the cluster effect of export enterprises, which play an important role in prevention of export credit risks. This paper proposes that the foreign trade-oriented SMEs should take the cluster model, strengthen cooperation and jointly prevent risks.