Research For Bill Financing Application In The Steel Trade Enterprise

With the deterioration of the steel industry, the steel trade enterprises have also been experienced their decline. Steel trade enterprises link upstream and downstream industries, but because of the amount of money demanded, operational risk, poor credit, financing difficulties to become the bottleneck of the development of the steel trade enterprise. In this regard, there are many rare aside listed corporate bond for enterprises to financing, there is still a mortgage of fixed assets, pallets, manufacturers of silver, bank credit, mutual insurance, third-party advances, acceptance endorsement, credit mortgage certificates and so on. But they can be summarized in two methods, bank loans and private loans, but their financing costs are too high, and monetary tightening, bank credit crunch are on the way. This author chose A steel trading company’s financing options, by understanding the study found bill financing can provide steel trade enterprise value chain to provide appropriate funding gap financing channels. The main purpose of this study is to address the financing needs of the steel trade enterprises.Although not an entirely new bill financing of financing, but the benefits to the enterprise is not the same as the application of the different ways, this paper from the perspective of practitioners bill financing for a new conceptual definition includes not only the narrow sense the bill financing, but also includes a buyout transaction from the real existence of transferable letter of credit financing and back to back letter of credit financing, through the A mode of operation of the company’s steel trade analysis, research notes financing enterprise application mode in the A design, I learned bill financing specific operations processes, clearly it can effectively reduce financial costs and ensure funding chain integrity, contributing to the normal operation of business, but these financing methods in the application process will be a variety of obstacles, this paper provide some risk response strategies to deal with these obstacles.Through research and analysis about bill financing in A steel trading company, and provide some funding recommendations to the A steel trading company’s financing innovation, another from a practical point of view to redefine this bill financing; in practice for other companies provide a reference. In order to better financing for the development of enterprises’.escort.