Analysis And Selection Of Trade Financing Methods With XH Aluminum Company

Aluminum industry is a capital-intensive industry,which needs large capital investment.In recent years,the aluminum industry has expanded blindly.The debt ratio of aluminium enterprises is generally high.In recent years,the excess capacity has been serious.Influenced by the global economic downturn and trade protectionism,the international commodity prices have continued to fall,and the aluminium industry has suffered serious losses.With the influence of domestic credit tightening and new capital regulations,the traditional financing channels relying on bank loans and shadow banks are blocked.Enterprises urgently seek new financing channels to alleviate the debt plight of enterprises.As a structural short-term financing,trade financing relies on sales revenue or future cash flow of goods under real trade background contracts as self-repayment,which weakens the borrower's credit rating and traditional asset mortgage requirements,and is adopted by many enterprises as a new financing channel.At present,there are mainly two kinds of financing,one is supply chain finance based on the background of industrial chain,the other is structured trade finance based on the background of overseas trade.This paper takes XH aluminum company's trade financing as a case study,reviews the traditional financing theory and trade financing theory with literature research method,and expounds the concept,type and the latest development.Combining case analysis and comparative analysis,this paper analyses the financing status and problems faced by XH,and compares its traditional financing mode and trade financing mode.In the case that bank loans and shadow banking channels are blocked,based on its own industrial chain background and the advantages of foreign trade background,draws a conclusion that trade financing is more in line with the enterprise's financing mode.Through the analysis of XH expansion and construction in the early stage,it has been put into production and completed.In the later stage,there is a problem of excess products.It can solve the problem through supply chain finance.By analyzing XH international trade background advantages in the past,we can carry out structured trade financing with the help of overseas bank financing.Finally,from point to area promotion,it is concluded that enterprises with industry chain background and foreign trade background can use trade financing to alleviate or solve the financing problems.By introducing the trade financing case of XH,this paper attempts to explore the possibility of multiple options of financing channels in the aluminum industry from a practical point of view.