Research On The Selection Of BYD's Accounts Receivable Financing Model

Funds to enterprises are like water for life,and the problem of capital has always plagued the development of enterprises.This is especially true for the new energy automobile industry.At present,China’s new energy automobile industry is still in the process of rising,and enterprises need a lot of money.Product research and development,improvement of product performance need money.In recent years,government cut subsidies for new energy vehicles,the funding problem is more serious.On the other hand,with the prevalence of the credit economy,the scale of accounts receivable has gradually expanded,income cannot be realized,and it is unable to meet its own development needs.Under this circumstance,the use of accounts receivable financing is the solution to solve these two problems.Accounts receivable financing is an effective way,on the one hand,to improve the liquidity of assets and provide sufficient working capital for enterprises,and on the other hand,to reduce the risks brought by accounts receivable.It is a new choice for enterprises.Based on the literature research,this paper sorts out the related documents and introduces the concept and process of three accounts receivable financing models.This paper selects BYD as the research object.Through the analysis of BYD’s financial data,it is found that BYD’s financing needs are very large,but its own funds cannot meet the production needs,and the financing method is relatively simple,and it is completed by means of external borrowing,resulting in BYD’s debt level higher than the industry average.BYD needs to change the financing method.At the same time,this paper got the conclusion that the accounts receivable financing is feasible after analyzing the accounts receivable size,the age of accounts receivable and the national policy environment.Then,based on the characteristics of BYD’s financial situation and the characteristics of three accounts receivable financing models,this paper analyzes the relevant factors affecting the financing effect,constructs BYD’s accounts receivable financing model,and uses the analytic hierarchy process and the comprehensive fuzzy evaluation method to obtain the evaluation results,and select the optimal ones.Finally,it puts forward relevant suggestions for BYD to strengthen the management of accounts receivable and implement the financing of accounts receivable.This paper aims to use the accounts receivable financing to solve the two problems of BYD,broaden the financing channels of BYD,promote the development of enterprises,and provide reference for other enterprises to establish a diversified financing system.