Study On The Selection Of Accounts Receivable Financing Mode Of BH Company

At present,small and medium-sized enterprises in China usually sell goods on credit to achieve the goal of developing good cooperative relations with core purchasing enterprises and stabilizing the company’s operation and development.This phenomenon is more obvious in the wire and cable manufacturing industry.Such sales way,however,have promote the company’s sales ability and expand the production of the company,but a massive increase in accounts receivable led directly to the liquidity occupied too much of the enterprise,brought negative influence to enterprise’s capital turnover,and along with the increasing of account receivable,the management of cost,opportunity cost,and possibly the risk of bad debt will also further increase the burden of enterprises.At the same time,in order to adapt to the development of the market,enterprises need a large amount of financial support to ensure technological innovation,product update and daily management.However,due to the limitations of their own conditions,smes have relatively single financing channels.In the face of the above problems,the Chinese government is also actively exploring the diversity and universality of financing,encouraging smes to develop new financing models,emphasizing the development of accounts receivable financing.With the support of the policy and the improvement of the market,accounts receivable financing will be more widely used by enterprises.This paper takes BH wire and cable manufacturing company as the research object.Firstly,by analyzing the operation and financial status of BH company,it is found that there is an unfavorable phenomenon of lack of working capital.The reason for further analysis is that the company has serious credit sales in the past three years,a large amount of accounts receivable cannot be realized,and the existing financing can no longer meet the current large demand for capital in the production and operation of the company.Secondly,combined with the above problems,this paper analyzes the necessity and feasibility of carrying out accountsreceivable financing by BH.Then,the paper analyzes the different concepts,characteristics and processes of four main modes of receivables financing: pledge of receivables financing,factoring with recourse,factoring without recourse and securitization of receivables.In addition,the index factors influencing the financing effect of enterprises in the four accounts receivable financing modes are compared and analyzed,and the selection evaluation model of accounts receivable financing mode of BH company is constructed by using the fuzzy comprehensive evaluation method,and the selection results are made according to the actual financing background of the company,and the expected effect is finally analyzed.Finally,in order to ensure the smooth development of BH’s future accounts receivable financing,this paper puts forward relevant scientific countermeasures for choosing accounts receivable financing mode.