Accounts Receivable Financing Pledge Optimization And Risk Assessment

Abstract:Small and medium enterprises (SME) could be considered as a force for the purpose of improving China’s overall economic environment, which plays a very important role on the process of China’s economic development. Financial difficulties have progressively been the stable problems that limit their sustainable development, in spite of China established a new "Property Law" in2007to redefine the right quality, emphasizing receivables as collateral that can be regarded as chattel so as to convert the situation that a large number of traditional SMEs are lack of effective pledged estate as the new financing channels. Large financial institutions such as Ping An Bank, ABC are the main innovation institutions for the sake of solving SME financing difficulties, and designed proper supply chain of financial services products. To some extent, the service eased the pressure of SME financing.This paper describes the system of accounts receivable financing pledge theoretical basis, the concept and the operation mode for the core business of economic and trade activities in the supply chain. It appears to force the buyer credit by the virtue of its scale, deferred payment, resulting in dysfunctional and working capital for SMEs which unable to achieve rapid recovery of capital investment in production and recycling. Then it makes the supply chain upstream industry chain instability in-depth analysis. SME suppliers use accounts receivable financing mode, taking into account the risk factors, risk assessment and use fuzzy comprehensive evaluation method of AHP to determine the substance of the pledge rate of SMEs. So financial institutions can lower the credit standards under this circumstances which could ensure the recovery of capital.Finally, through the analysis of actual cases-DongFeng Automobile Parts Supplier Machinery Co., Ltd. Hubei L using corporate pledge of accounts receivable financing successfully solved the problem of cash flow problems in2012.The application on the basis of the above risk assessment methods and the traditional model of analysis to prove pledge of accounts receivable financing model to accelerate the capital turnover rates. As well, improving the capital efficiency which makes an important role in the smooth to guide our government actively deepen the reform of the mechanism of financial innovation environment. Next, there are practical feasibility and a priori, to achieve third-party. vendor, the core business, the banks all win their desire.