Problems And Solution Of The SMEs Accounts Receivable Securitization

With the rapid development of information technology and the opening to the outsideworld, small and medium-sized enterprises (SMEs) in our country is flouring, quickly become anew force of China’s national economy. But in the existing financial system of our country, thelimited supply of funds can’t match with the large number of financing demand for the SMEs,and the financing problem has become an important factor to restrict the further development ofSMEs. In this regard, the government and related departments has made a great of efforts andpractice, but the effects are disappointing. In fact,‘the stock of assets don’t flow, cash can’tcirculate’ is the fundamental crux of SMEs’ financial strain. Therefore, invigorating the stockassets and circulating the capital chain will play an important role in resolving the financingdifficulties of SMEs.According to statistics, China’s small and medium enterprises’ accounts receivable in Chinaoccupy as high as50percent of its current assets, which hinders the efficiency of SMEs’ capital.So, how can we make an inventory of SMEs stock assets and alleviate the financing difficultiesof SMEs? Accounts receivable securitization will be an effective means to invigorate the stockassets in SMEs. Through accounts receivable securitization of SMEs, we can become stockassets into liquidity, expand enterprise’s capital channel and optimize business’ financialstructure, hoping to effectively solve the financing problems of SMEs.However, in the operating process of accounts receivable securitization, SMEs will facemany problems and obstacles in operation mode and practical environment. On the purpose ofsolution to the problems, this paper adopts theoretical analysis, data analysis, comparativeanalysis and case analysis and other methods to make a specialized study in operation mode andpractical environment of accounts receivable securitization. Based on the discuss in accountsreceivable securitization，this paper analyzes the problems and obstacles in operation andpractice of SMEs’ receivables securitization. And then by reference and summary of thedomestic and foreign experience and the enlightenment from that，the thesis proposes the‘double structure’ trading patterns and studies its structure and process. At the same time thispaper selects SMEs and accounts receivable based on the industry supply chain, and deepensthe trade pattern through the recycle mode and reuse of capital. Finally, this paper discusses theother problems including the supporting mechanism and the risk prevention in future practice,in order to ensure the smooth functioning of the pattern.