Research On Credit Identification And Control Of Credit Business In MM Chemical Company

Nowadays, credit has become a frequently-used form of transaction. And, mostcorporations use credit as a principle method to stable sale channel, expandmarketing scale, improve penetration of market and increase sales revenue. In China,due to the poor awareness of credit and the lack of the social credibility system,many corporations default for goods each other and even try to avoiddebts deliberately, and these behaviors also let these corporations hard to survive insuch a environment which is lack of credit. Therefore, studying credit-risk andbuilding a risk control system becomes very necessary. The thesis took MMChemical Corporation, which is a state-owned enterprise, as the objection of thestudy. Firstly, this paper makes a comprehensive analysis of background, currentcredit management situation. Secondly, the paper conducted a detailed analysis ofcredit operating process, credit period, reasons and different methods of settlement.And, based on the above analysis, according to the issues existed in current creditmanagement system, this paper raised five measures to decrease the risk of creditcontrol system.Based on the practice experiences, in order to set a credit risk warning system,this paper discussed all the risk points during the credit activities, and put forwardeda series of measures to improve corporation risk control level such as, strengtheningclient credibility systems, implementing dynamic closed cycle management of credit,improving responsibility management level and increasing performanceevaluation proportion of credit control.