Research On Risk Control Of Accounts Receivable Financing Of Medium-sized And Small Enterprises Under Factoring Business

For fast developing Small and Medium-size Enterprises(SME),capital plays an important role in their development.Financial institutions favor large state-owned central enterprises,listed companies and offer them traditional credit business,as mortgage guarantee and local government financing platform business.But the financing of small and medium-sized enterprises have encountered many bottlenecks,such as high financing cost,lack of collateral,which restrict their desire for capital.At present,with the constant innovation and development of finance and the high attention of the State Council to the development of SME,it is possible for SME's to integrate with the capital.Commercial factoring model based on accounts receivable.prepayments allows SME's financing successfully relying on the upstream suppliers and downstream buyers from the strong advantage of factoring company.From the perspective of financial institutions,factoring has solved the problem of financing of SME's,and also promoted the sustainable development of the supply chain financial factoring business.Based on the perspective of risk control,this paper do the research of commercial factoring companies for SME's,for account receivable financing,with a view to the promotion in factoring financing business risk management capabilities.The main research methods is literature research,qualitative analysis,quantitative analysis and case analysis.First,we explains what is SME's,accounts receivable,small and medium enterprises financing situation and difficulties,and then explain the mode of commercial factoring financing and how to carry out the risk control of accounts receivable financing.Then we do case analysis,illustrates the risk assessment of enterprise accounts receivable.Finally,the paper comes to a conclusion that the key point of risk control of accounts receivable financing for SME's is to analysel.The credit situation,financial situation,the main business of companies on supply chain upstream and downstream;2,Accounts receivable payment,accounts receivable aging,financial data of the enterprises;3 risk control of law relations.Then we use financing cost analysis model of accounts receivable,1.Factoring financing can reduce the opportunity cost of enterprise capital and obtain working capital.2.Factoring business can greatly save the risk of enterprise accounts receivable control costs.3.Factoring business can reduce the bad debt risk of enterprises.4.The use of factoring business improve the timeliness of collection and collection capabilities.Finally,the paper expounds the existing problems of commercial factoring financing and the business loopholes of factoring business.