Research On The Business Credit Risk Evaluation Of Iron And Steel Enterprises

With the development of the commercial credit financing,the business credit risk between the upstream and downstream enterprises of the supply chain appears.Under the condition of high leverage,affected by the macroeconomic environment,credit status and performance capabilities and other factors,problems such as frequent business difficulties and loan payment arrears appears.Among them,the high debt of iron and steel enterprises,the frequent occurrence of breach of contract,cause widespread concern and concern of credit enterprise companies.As the focus of the valuation of financial instruments such as accounts receivable and notes receivable,the methods and practical experience of commercial credit risk assessment are not mature.Therefore,the establishment of a scientific evaluation system becomes the common requirement of suppliers,steel enterprises and the assessment agencies.In view of this situation,on the basis of literature review and theoretical analysis,this paper build the Logistic evaluation model based on partial least squares,and take H Steel company as example,exploring the construction of enterprise commercial credit risk evaluation index system and the choice of methods.First,the article defines the concept of commercial credit risk,and analyzes the theory of commercial credit risk origin and the theory of commercial credit risk evaluation.Then,based on the current situation of the iron and steel enterprises and the source of the commercial credit risk,the credit risk evaluation index system including two aspects,namely,the performance will and the performance ability,is constructed.By comparing the various methods of commercial credit risk assessment,with the help of SIMCA-P software,this paper establishes the Logistic evaluation model based on partial least squares method,and makes a series of test of the model.At last,the evaluation of the commercial credit risk is carried out,and the validity of the Logistic model based on partial least squares method is verified.The paper puts forward some countermeasures and suggestions for the government to promote the debt restructuring,the credit party and the evaluation institution to pay attention to the willingness to perform the inspection and the steel enterprises' ability to strengthen their innovation capability.The contribution of this paper is to apply the credit evaluation method to the credit risk assessment of commercial credit.At the same time,the Logistic model based on partial least squares method provides a reference for the commercial credit risk evaluation.