Research Of WH Company Accounts Receivable Management And Pledge Financing

In recent years, government authorities have giving more and more attention to environmental issues, under the national environment, boiler manufacturers are faced with technological innovation, enterprise restructuring, opportunities and challenges. In the crucial stage of business transformation, enterprises of boiler manufacturing industry need to focus on the problem of how to deal with the above challenges. For boiler manufacturing enterprises, accounts receivable are always of huge amounts and of high proportion of current assets. Therefore, in order to revitalize the enterprise funds, the level of corporate accounts receivable must be raised. In addition, "Property Law" of 2007 provide a legal basis for Chinese enterprises to use accounts receivable as collateral to obtain bank loans. Meanwhile, WH enterprises are facing severe challenges of receivables management, because its accounts receivable can’t meet the financing needs to address other strategic decisions on the issue.This paper first tried to find the problems of accounts receivable management through the financial data of enterprises WH. Then, after specific analysis of the WH enterprise in boiler industry, I found the problems of accounts receivable management and opportunities and challenges which WH enterprise are currently facing with to further analyze which measures the company should take to improve the management of accounts receivable. Last, in the aspects of receivables management measures, my discussion focuses on accounts receivable financing mode and come to a reasonable application mode of financing accounts receivable financing to improve the quality of accounts receivable of enterprises and the capital turnover rate. Secondly, combined the specific circumstances of WH corporate financing model, this paper tries to identify its pledge financing of accounts receivable financing and find the problem during the application process and pledge of accounts receivable financing which enterprises should pay attention to. Last, this paper explore the cost of financing of accounts receivable and how to save cost of pledge financing in the accounts receivable financing process.In this paper, through the case study of WH boiler company receivables management, I tries to provide references and give suggestions to the mechanical manufacturing industry companies on how to improve accounts receivable management system, choose the best model of accounts receivable financing, control corporate receivables pledge financing costs and also how to evaluate the efficiency of the company accounts receivable financing.