Research On Financing Model Of Vcontrol Company Based On The Accounts Receivable

With the deepening reforms of economy, large numbers of small and medium enterprises are born to make a great contribution to improve the economy, increase employment, and increase tax revenue. However, due to the imperfect policy system, asymmetric capital market information, imperfect financial system development, SMEs themselves many defects, many SMEs are difficult to obtain sufficient external financing and are facing the risk of a shortage of funds. In other countries, accounts receivable financing has become an important way of financing for SMEs, and the development is mature. But in the country it has not been widely adopted.The Vcontrol company was founded in 2004 and is Zhongguancun high-tech enterprises and Beijing’s high-tech enterprises. It is listed in the new three-board in July 2013, and is the first manufacturers to develop and product control products and professional Room intelligent control system in the country. As one of high-tech SMEs, Vcontrol is facing the same problem with the vast majority of small and medium enterprises, that is external financing difficulties. But the company is now in new products, new technology development period, requires a lot of R & D investment, while the main customers are the large hotels, they are strong and active, so company sometimes will face the case that there will be a shortage of working capital. Based on this background, how to rely on its strong customer base and use accounts receivable financing has become an effective way to alleviate Vcontrol’s problem of financing.This paper mainly based on Vcontrol company,analyze their financial situation, problems and causes that exist in the financing process. with specific financing environment, analyze the feasibility of accounts receivable financing model implemented in Vcontrol company. Then to design specific funding programs, through compare efficiency in different ways,choose the best suitable way to solve the financing difficulties. Then put forward suggestions in Vcontrol for the smooth development of the company’s accounts receivable financing mode.The purpose of this study is to first analyze the reasons for the problem of financing Vcontrol company had produced, then designe specific funding programs to solve the financing problem. Theoretical significance of this study was to improve and deepen the SME Financing Difficulties theory and case studies, enriched the theory of receivables financing options, practical significance is helping companies improve accounts receivable management efficiency and helping Vcontrol company to resolve the problem of financing, and helping banks to innovate products. This paper combined theoretical research and case study methods,qualitative and quantitative methods to study Vcontrol accounts receivable financing.