Commercial Banks’ Export Receivables Pool Financing And Its Risk Management

With the credit sale becomes the mainstream of international trade settlementgradually, our small and medium export enterprises have a large backlog of receivableswhich are fragmented and characterized by single small amount. Take commercial banks’investment needs and small and medium export enterprises’ tight liquidity status intoconsideration, I believe that as an innovative supply chain financing model, exportreceivables pool financing is the most perfect way to solve the tight liquidity of small andmedium export enterprises. We should promote the financing model vigorously in China’sfinancial sector. In order to prove the superiority of the financing model, we use literatureresearch and cash studies to analyze the specific mode of operation of export receivablespool financing and its innovative risk control measures. Literature research and largeforeign financial institutions lay the theoretical foundation for this article. The plan ofexport receivables pool financing for H Company customized by Z Bank show the cautionand thoroughness of the operational mode. In addition to the common way of risk controlmeasures, for example self-liquidating trade finance rating system and e-commerceplatform, the financing model also incorporates an innovative risk control principle–lawof large numbers and lock box arrangement which control risks within the scope of thecommercial banks can withstand and improve the profitability of banks. Therefore, notonly providing a new financing channels for our small and medium export enterprises, butalso increasing a new way of profit for China’s commercial banks, export receivables poolfinancing is worth promoting in China’s financial industry.