Study On Financing Model Of Accounts Receivable Securitization

Financing has always been the significant problem of enterprises. Enterprises' selection of financing mode and innovation not only concerns cost of capital but also operating efficiency. Therefore, selection and breakthrough of financing mode has been the main problems to be solved by enterprises.Asset securitization as a new financing mode, through the selling of assets lack of liquidity but has expected income by issuing securities in the capital market collects funds and maximizes the liquidity of assets. Accounts receivable securitization as a new financing mode of asset securitization not only solves the dilemma of the existence of much high-quality accounts receivable but hard to finance, but also revitalizes enterprise assets, reducing enterprises' financing costs and enhancing enterprise value.This paper includes six parts. The first part is the preface, introducing the background of accounts receivable securitization and significance of accounts receivable securitization on financing briefly, pointing out the purpose of this study, and then summarizing the research status in China and abroad, research contents, framework, methods, innovations and shortcomings briefly. The second part describes accounts receivable securitization theory briefly, including the concepts, principles, participants and processes of accounts receivable securitization, laying a theoretical foundation for the analysis of accounts receivable securitization. The third part has an analysis of the current situation and feasibility of accounts receivable securitization in our country, and analyses the characteristics of accounts receivable securitization of United States and the enlightenment of the implementation on our country. The fourth part, starting from the selection criteria of accounts receivable securitization in China and analysis pricing of accounts receivable in order to evaluate the value of accounts receivable securitization, considering the defects of credit management exposed during the U.S. financial crisis, it strengthens the management of enterprise credit rating and credit risk. Taking the example of the development of accounts receivable securitization in Minmetals, it analyses the concrete operation process and the benefits to the development of Minmetals with this financing mode, taking a further argument of the feasibility of accounts receivable securitization. The fifth part points out the obstacles existing in the implementation of accounts receivable securitization from legal, accounting and tax, agents and credit risk perspective, puts forward suggestions that improve Accounting and Tax system of accounts receivable securitization, develop relevant agencies, construct the credit system etc. Through study, the sixth part concludes that the development of accounts receivable securitization in China is still in the primary stage, but it has wide prospects. On the basis of drawing lessons from foreign experiences, we can develop accounts receivable securitization steadily and to strengthen researches on the value of accounts receivable securitization. Along with the development of accounts receivable securitization, we should strengthen the improvement of credit rating and credit system, ensure the smooth operation of accounts receivable securitization.