Research On Inland SME Foreign Trade Company's Export Credit Risk Management

Under the “One Belt and One Road "(briefed as “OBOR”)all-round opening-up strategy,business activities between China's small and medium-sized enterprises(briefed as “SME”)in inland areas and "OBOR" alongside countries have been increasing dramatically.Chinese foreign trade enterprises have to face the increasing various competition models.Comparing with the bank credit,the internationally acknowledged commercial credit has been rising steadily and become one of the most important and popular way of settlement,though credit transactions cost more than pay on cash or deposit.Even in the modern era of big data,information asymmetry always exists considering of the particularity of foreign trade and foreign customers.According to CCG,most “OBOR” alongside-countries encounter problems of unstable monetary system and insufficient foreign exchange reserves.China's inland SME foreign trade enterprises lack timely and effective information and appropriate judgment criteria on currency,foreign exchange,credit and risk in the international arena.Commercial practice proves that when the business cooperation decisions-making are in urgent need,decision makers often could not successfully avoid the credit trap because they cannot quickly and accurately assess the hidden risks of cooperation.Credit risk has become one of the major financial risks.Export credit risk management fictionalization,technology specialization and management specialization have become the basic trend of inland foreign trade credit risk management.How to improve the efficiency of credit decision-making,optimize the risk management process and make reasonable risk management decision has become the top priority of the management for the modern SME in inland areas.This paper attempts to analyze from the perspective of inland SME foreign trade enterprises' export credit risk identification,assessment and management,trying to summarize a set of export credit risk management optimization scheme with the purpose of effectively bettering the ability of risk management of the inland SME foreign trade enterprises.Firstly,literature review on the knowledge of export credit risks management at home and abroad to provide theoretical basis for the paper.Secondly,analyzes the present situation of export credit risk management of the inland SME foreign trade enterprises,put forward the export credit risk management problems exists in the case company.Then,identify the reasons of export credit risk from macro aspects,industry aspects and enterprise aspects.Finally,the export credit risk management optimization scheme has been put forward,proposing that the export credit risk should be raised from the vision of internal control to the height of the enterprise development strategy.To shorten the decision-making cycle,improve operational efficiency and reduce operating costs,inland SME foreign enterprise should manage the export credit risk from the following aspects: trade partners choice with care,contract risk control,customer credit management,financial analysis,budget performance guarantee,accounts receivable management,information system building,crisis handling and optimization of export credit risk management in the whole commercial business process.