Study On Sany's Receivables Securitization

Credit sales can expand sales and increase profits,which is one of the common ways for enterprises to sell.Although the accounts receivable generated in the credit is shown under current assets in the balance sheet,but its fluidity is far lower than the monetary funds.And corporations need additional payment and management costs for maintaining accounts receivable.In view of that characteristic of higher product unit price,the enterprises in in the engineering machinery manufacturing industry mostly have the problems of large total amount of accounts receivable and high proportion of accounts receivable in current assets.Asset securitization of accounts receivable is securitization financing carried out with accounts receivable as the basic asset.The less liquid accounts receivable can be realized through the real sale risk isolation mechanism.Compared with traditional financing methods,receivables securitization has the advantages of improving the financial condition of enterprises and activating current assets,which can relieve the pressure of receivables management in engineering machinery manufacturing enterprises to a certain extent.The development of accounts receivable securitization in our country is late and slow,but the government has successively issued relevant policies recently,which reflects that the government strongly supports enterprises to use the securitization of accounts receivable for financing.This paper chooses the securitization of accounts receivable as the main research object,and analyzes the influence of the securitization of accounts receivable on corporate finance by combining the specific practice of SANY.Thereby providing some experience for other engineering machinery manufacturing enterprises.This paper firstly reviews the domestic and foreign literature research on enterprise asset securitization and receivables asset securitization,Next to the theoretical basis of receivables securitization has carried on the brief introduction,including the theory of financing and risk management theory,and define the concept of receivables securitization,analyzes the operation of receivables securitization process,and then compare the securitization of accounts receivable and accounts receivable pledge factoring is different,thus forming the receivables securitization form relativelycomprehensive understanding.Then explain the background and basic steps of sany's securitization of accounts receivable.The following is the focus of the paper:The influence of securitization of accounts receivable on SANY's finance.In this part,the cost of SANY's securitization financing was analyzed,and the financial impact was specifically analyzed from the perspectives of operation ability,profitability,capital structure and debt paying ability.Finally,based on the experience provided by SANY's special plan to issue accounts receivable asset support,some Suggestions on financing by engineering machinery manufacturing enterprises using accounts receivable securitization were put forward.