The Trust Model On Liquidity Of Accounts Receivable With Government Cooperation

Trust industry,with its past accumulation,has surpassed the insurance industry and became the second largest financial pillar industry after the banking industry.In this era,the trust company actively seeks new business growth points.At the same time,in order to respond to the call for the construction of urbanization,the local governments develop the local economy and have set up platforms for local government investment and financing so as to increase the loan size for various banks.But it also brings adverse consequences,resulting in a high debt for local governments,and the loan quality of the central bank regulation limits the long-term loans to some extent made by local government financing platforms.This provides an opportunity for trust companies and financing platforms to corporate with trust company.In recent years,this kind of trust products have gained popularity in the market.And the liquidity model focusing on the accounts receivable,with its own advantages,has met the financing demand for local governments and financing platforms.The theory of financial innovation and financial function becomes the guiding ideology of this research.By analyzing the features and current debt of local governments financing and financing platforms,this paper explores the pros and cons of four financing channels embraced by platform companies.And combining with its own features,it then concludes that the financing needs of the financing platform are to open up new financing channels and revitalize accounts receivable debt.Then,by analyzing the advantages of trust in the accounts receivable financing and financing in platforms,and comparing the liquidity model and the traditional model of aggregate capital,this paper explores the transaction structure and nature etc of this mode,and explores advantages of the accounts receivable liquidity with cooperation of trust company from various aspects.And then with specific cases,this paper matches the financing needs of QP city construction company with its financing conditions,and designs the the trust model on liquidity of accounts receivable with cooperation of QP and ZX.With the design in specific cases including trust products,transaction structure,repurchase price payment,repayment arrangements,risk protection measures,this paper makes it clear the detail of this mode and enhances the comprehension to this mode.Finally,with the case analysis,it explains the feasibility analysis of mechanism and mode of investment and financing policy in QP city construction company and key part analysis of mode design,which further unveil the advantages of this mode and prospects for the future.In conclusion,for local governments,using this kind of financing mode will not increase the debt scale for local governments.Opening up a new financing way on the stock debt can mitigate the debt crisis and default credit crisis of local governments,and the approval rate is fast enough to meet timely demands;For trust companies,they can reduce the risk of capital base and then reduce the cost,eliminating the intermediate link like assessment and transaction at site.At the same time,the property can be separated by bankruptcy,without the risk of being revoked by the creditor.The advantage of the e this model shows great chance in the future.