Research On Financing Mode Of Engineering Contracting Enterprises

Under the background of "One Belt And One Road",more and more Chinese enterprises "go out" and undertake various project construction projects in relevant countries and regions.Our government encourages Chinese engineering enterprises to"go out",which is a forward-looking national strategy adapted to the world economic environment.However,opportunities and challenges coexist,default payment for goods for foreign buyers for many years,such as business risk and political risk to the investment companies such as local war caused great losses,these risks influence the business confidence and the pace of "going out";And the implementation of the project construction cannot leave the corresponding investment,in the face of problems such as insufficient funds and country risk and construction,how to take the financing way and the relevant prevention and control of risk become a top priority.The international business of countries along the "One Belt And One Road" is mainly faced with the following two aspects:the first is the country risk problem,"all the way along the" along the country risk is relatively high,many countries there are ethnic tensions and instability,the problem such as territorial conflicts,according to country risk rating,the rating agencies in the countries along the "area",medium risk countries accounted for as high as 68%,25%high-risk countries,low risk countries accounted for 6%.The higher the risk,the greater the risk.The second is the financing problem,most of countries along the "area" is a developing country,relatively backward infrastructure construction process,the existing Asian development,the world bank and other multilateral financial institutions to provide adequate financial support;Secondly,part of the "area" all the way along the country is relatively backward economic development,administrative examination and approval,such problems as low efficiency,poor financial environment,the lack of the ability to raise funds through the capital market and experience,the plight of the less financing ways;Again,foreign capital bank loan price is usually lower than Chinese Banks,but the risk preference of foreign Banks in its "neighbourhood" all the way along the country offers a lower risk of wholesale funding,Chinese bank loans offer higher lead to Chinese enterprises lack of competitiveness in the international bidding.The key to the implementation of the project is the financing link.Our country enterprise implementation of overseas projects financing ways mainly include the following five kinds:export buyer's credit,export seller's credit,financing lease,two optimal loan,the international syndicated loan,each way applicable industry,different period is different,each have advantages and disadvantages.SINOSURE first proposed the "quantity" single financing model,this model is suitable for the engineering contracting industry and shipping industry,the advantage is that without any increase in the rate of assets and liabilities of the domestic engineering contracting enterprises,also do not take up working capital loans,accounts receivable can be sold off to the bank to achieve specified in advance,reduce the exchange rate risk,optimizing cash flow,giving foreign owner of deferred payment is convenient,the owner of the credit risk borne by SINOSURE.For the owner,adopting deferred payment settlement is a more secure payment method.There is no cash outflow during the construction of the project,without financial pressure and less financial pressure.This financing model has been successfully operated in Yunnan for the first time.It has brought new methods of financing to the project contracting enterprises in Yunnan and helped the enterprises in the province to actively explore new markets and win the market competition.