Research On The Method Of Enterprise Accounts Receivable Financing

With the intensification of the market competition,in order to enhance the competitiveness and expand market share,enterprises not only continuously improve their quality of products and services,but also take the way of credit to attract more customers on the sales model.Thus,enterprises would produce accounts receivable.Enterprises could improve product sales by adopting credit settlement,but if enterprises expand market share by credit settlement blindly,would lead to accounts receivable accounts for too high,and resulting in a large number of funds be occupied by customers,which would increase the business risk of enterprises.On the other hand,due to cash flow blocked or business expansion,enterprises will have financing needs.However,because of the lack of real estate collateral,it is difficult for such enterprises to obtain financing through the financial institutes.As the important current assets,accounts receivable are common in different kinds of enterprises.As a result,the demand for accounts receivable financing came into being.Internationally,accounts receivable financing has developed into a common form of financing.But in China,due to the imperfection of laws and credit system,the business of accounts receivable financing is still in the initial stage.At present,there are three main accounts receivable financing in China,namely the accounts receivable pledge financing,the factoring financing and the securitization of accounts receivable financing.Therefore,it's important to research the topic that how to choose the appropriate way of accounts receivables financing for enterprises.Based on the angle of the enterprise,this paper makes a research on the way of receivables financing.First of all,this paper introduces the concept,operation flow and business characteristics of three kinds of accounts receivable financing,and introduces the theoretical foundation related to accounts receivable financing.After that,this paper summarizes the development of accounts receivable financing in China by data analysis.Secondly,because of the enterprises in film and television industry are lack of real estate collateral,and they are more often to adopt credit settlement,which make they have the needs of accounts receivable financing.In this paper,B Company of film and television industry as a case study of accounts receivable management and financing need.This paper analyze the receivables financing need of B company,and make the feasibility analysis.Thirdly,based on the comparison of financing cost and financing risk,this paper analyze the different ways of accounts receivable financing for B company,and selects the most appropriate way.Finally,in view of the existing problems in the operation of accounts receivable financing,this paper make some suggestions for enterprises,financial institutions and government,which will provide reference for other enterprises to choose accounts receivable financing in the future.