Risk Management Of Export Credit Business

Under the background of the unprecedented global economy integration, the enterprise required higher and higher of marketing. And the vagaries of financial innovation development have also had a profound impact on the global market. When a company wants to produce their goods into money or monetary equivalents, the sales tend to be the most sensible choice. To a certain extent, marketing is the most important thing in the enterprise’s daily work process. The traditional lag trade pattern that one company get the cash while delivery the goods can’t adapt demand for the development of enterprises. In this case, credit sales model arises with the development to meet this demand. To some extent, the credit sales is the inevitable result of market economy development. Credit sales are the separation of sales and payment on time. In other words, companies do not usually get paid accordingly immediately hand over the goods at the time, but at an agreed time in the future get the payment of money. In part this can increase enterprise sales of goods and improve the productivity of enterprise itself, improve the utilization efficiency of funds so as to enhance the competitiveness of the enterprises and achieve its economic goals. However, due to domestic credit environment is not sound and the lack of public’s credit concept, related credit guarantee system and credit risk sharing system is not effectively implemented and the development of credit sales come to a halt. In these contexts, the sales companies often can not effectively through the credit sales reached their original economic purpose, the development of China credit sales system is also far from reaching the level of corporate development needs. Credit sales is the only way for the development of enterprises and it can help enterprises to realize merchandise sales and value creation quickly and effectively, however, only the credit risk guarantee in manageable, sales of enterprises will have practical value and realize value creation in commodity sales. Plenty of capital flow is the prerequisite of enterprise to develop and expand, so effective credit risk management for enterprise development is indispensable. However, the credit risk management involves all aspects of business activity and customer’s credit rating is a kind of very effective means of management.In credit sales, vendors based on the trust of sales to the customer but not require payment on the spot. On the same time, Sales is convenient to produce the credit risk. Customers can return the payment for goods or can return full payment for goods are uncertain events, if the customer do not pay for it, sellers will face capital losses and affect the whole development of enterprise. However, the enterprises will not identify that all the credit sales items will lead to capital losses because of the possibility of default while they also will not refuse to use credit sales model because of the possibility of a capital loss. As a result, to distinguish and analyze the possibility of default to refusal of payment timely and effectively of each sales matter is an important means to against credit risk. As a matter, as to domestic sales companies, credit risk of export enterprises is difficult to predict so as that the regional cultural differences and information asymmetry is more prominent. As the world’s biggest exporter, establish actively a sound credit risk management system of our country’s economic development has a great practical significance. If can’t control the credit risk effectively, export enterprise’s survival and development will be a huge layer of shadow. As we can see from the date in 2003,bad date overseas is up to 671.2 billion yuan although exports throughout the year is amounting to 13.4 trillion yuan. The bad debt rate as high as five percent and it’s more than ten times as much as developed countries. The reason of the above phenomenon is partly because of the default of credit payment or unable to repay due to poor management. However the main reason is the poor management. When export enterprises are conduct credit sales activities,they have no effective customer selection and rating system so that they can’t understand the the client’s credit standing and financial strength overseas and make themselves in a high credit-risk trading environment.To sum up, credit risk management research is urgently needed and set up a complete set of customer credit rating system is of great significance for the enterprise itself.During the study, the author reviews a lot of research, and visited the HQ company’s financial management, and on this basis to determine the direction of research and research methods of the article. First, some advanced credit analysis and credit evaluation model analysis method can occur by conventional literature review; secondly, through the HQ corporate financial management interviews and investigation files to effectively understand the credit status of HQ companies, credit system characteristics of enterprise customers as well as groups and other relevant information. During the creation of HQ enterprise credit evaluation system, the author collect the views expressed by many financial experts by way of questionnaires, and so determine the relationship between the factors in the evaluation system.In the study, the author adopted the instructor actively consulting advice, and ultimately successfully established a corporate HQ customer credit evaluation system.This article combines the two methods of quantitative analysis and conduct comprehensive research on existing relevant credit risk of export enterprises as well as included in financial factors and all kinds of non-financial factors about enterprise development so as to establish a set of suitable credit rating system for credit risk management of export enterprises. Through the questionnaire,this paper counts out factors that will affect the enterprise credit rating and to work out the weight of each factor relationship by the relevant statistical methods. This paper construct correlation matrix to determine the index weight distribution and is calculated by using the Analytic Hierarchy Process. In this way, we comes at a rating model that can draw a set of evaluation results.