Research On Credit Risk Management Of JF Company’s Supply Chain

The agricultural machinery circulation industry is an industry that is highly dependent on monetary funds.Because the upstream agricultural machinery manufacturing industry is an oligopoly market,agricultural machinery manufacturers have higher bargaining power and do not accept agricultural machinery circulation enterprises to purchase agricultural machinery in the form of commercial credit.At the same time,the purchasing power of downstream customers is weak,and it is difficult for general farmers to pay all agricultural machinery at one time.In addition,the agricultural machinery circulation industry as a whole is characterized by "small,scattered,and chaotic",and competition among enterprises in the industry is fierce.In addition to price wars,companies generally adopt credit sales strategies to compete for the market.As a result,many agricultural machinery circulation companies have higher accounts receivable and occupy a lot of their working capital.However,companies in the industry are generally in a state of inadequate systems and backward management methods.Lack of effective credit management and risk control in the process of credit sales has resulted in a large number of bad debts and bad debts in accounts receivable.The failure to recover the accounts receivable in time makes the enterprise not have enough monetary funds to purchase goods,and even causes the capital chain to break.Therefore,it is of practical significance to study the supply chain credit risk management of the agricultural machinery circulation industry.This paper uses credit management theory to study the supply chain credit risk management of JF company,and analyzes in detail the problems existing in the supply chain credit risk management of the company and the solutions.In the nine-month survey of JF Company,the author first found out that the company had problems in credit management through analysis of financial statements;then,through the operating data obtained during the survey and the results of the interviews,he deeply understood the current status of the company’s management and management.Analyze the problems in credit management one by one,and found that there are five main problems,namely the lack of customer credit information,the lack of a quantitative credit policy,the lack of an effective collection policy,the excessively conservative provision of bad debts,and the lack of an organizational structure.Then,according to the above problems and the characteristics of agricultural machinery circulation enterprises,I put forward five suggestions for improvement,including establishing a comprehensive customer file,improving credit policies,strengthening account collection,adjusting the proportion of bad debt provision and adding credit management at the headquarters.unit.On this basis,this article also proposes safeguard measures to ensure that management policies can be effectively implemented.In addition,this article believes that China’s agricultural machinery circulation enterprises should not only strengthen internal supply chain credit risk management,but also effectively use the policy advantages formulated by the state in the context of the construction of a new socialist countryside,develop agricultural supply chain finance,and rationally use agricultural credit.Guaranteed loan support,etc.This article hopes that through the anatomy of JF’s supply chain credit risk management,it can achieve a glimpse of the whole leopard effect,and provide a reference for the operation and management of agricultural machinery circulation enterprises to strengthen their supply chain credit risk management.