Research On The Choice Of Z Company's Receivable Financing Model

With the continuous improvement of China's social economy,SMEs,become an irreplaceable important force to promote the sustained progress of China's economy.However,due to the scale and the imperfect internal system,most SMEs have a poor credit status.Coupled with the many restrictions of China's macroeconomic environment,the capital chain of SMEs is fragile,and it is caught in the financing dilemma,which gradually restricts the development of SMEs.How to obtain sufficient funds to support the continuous growth of enterprises has become the primary problem that SMEs must solve.In this context,this paper proposes to use the accounts receivable to raise funds,which not only improves the liquidity of accounts receivable,reduces risks,but also helps enterprises improve their financial situation and seize development opportunities.Based on the selection criteria and characteristics of different accounts receivable financing models,this paper summarizes the advantages and limitations of the three types of accounts receivable financing methods,by comparing the financing efficiency of different financing models and then draws the conclusion of the optimal financing mode.Firstly,the article discusses the current financing situation of Z company from two aspects:endogenous and exogenous.It finds that the proportion of endogenous financing is too low,the external financing is insufficient and the channel is single,which has the problem of large financing demand,difficult financing and high financing cost.And then they need to adopt receivables financing and to use receivable finance.In the comparison of the three factors affecting accounts receivable,the optimal financing method of Z company is obtained.Finally,according to the company's own situation,it proposes reasonable safeguard measures.By implementing the accounts receivable financing model,Z Company not only speeds up the flow of accounts receivable,but also improves the financial status of enterprises.It is of great significance to help small and medium-sized enterprises to speed up the withdrawal of funds and get rid of financial difficulties.