The Research On The Financing And Perfecting Countermeasures Of Factoring Business Of Construction General Contracting Enterprises

According to the incomplete statistics of external contractor in china,under the background of“the Belt and Road”,the value of the international projects which are followed by Chinese "Going out" companies amount to nearly 1 trillion dollars.In the traditional mode of financial credit,chinese overseas general contracting enterprises in foreign region have faced the financial bottlenecks of international investment and project contract.To solve the overseas financing difficulties of chinese related companies,it is necessary to look for new ways of financing.This paper studies factoring financing which is one of the international trade finance,it can reduce the burden of overseas financing of construction general contract enterprises,relieve the capital pressures,speed up capital turnover,optimize statements and avoid excessive occupation of groups' credit as well as create secure stable profits for chinese bank.The overseas general contracting enterprises have encountered various kinds of problems and obstacles in the development of factoring financing,so this paper will put forward countermeasure and suggestion against these problems and obstacles.In the background of the overseas construction enterprise,this paper firstly describes the basic concept of factoring business,classifies factoring business,and introduces the function of factoring business and the procedure and advantage of trade factoring;secondly,the paper well introduce the related theory of company financing,financing needs of enterprise,related theory of overseas construction enterprise factoring and the necessity of financing;thirdly,from the macro aspects,applicable regulations,credit system and so on are stilled need to be improved.from the micro aspects,it is found that the commercial banks lack the connotation of factoring and face the great risk which cannot be transferred with the operation of the factoring.The domestic factoring operation mode is different from the foreign bank.Aiming at the problems existing in enterprises,we analyse the procedure of the factoring financing to find the problem and reason within the case study of representative enterprises,including the analysis of the enterprise solvency,accounts receivable and project construction.The prominent problems are lack of solvency,fast growing of the accounts receivable and lack of the periodic management of the construction project.The reasons that explain these phenomena menationed above are lack of the detailed evaluation system,vague of the performance appraisal and reward as well as punishment,lack of shared information from different departments.Last,combining with problem and reason mentioned above,we will give the related countermeasure and suggestion from the macro and micro viewpoint.