Research On Credit Term Mismatch And Financial Risk Management Of Manufacturing Enterprises

With the rapid development of China's economy,the real economy,as the foundation of a country's economy,is more and more supported by economic policies,and the manufacturing industry,as an important part of the real economy,is also developing rapidly.Commercial bank credit is the first choice of financing channels for enterprises,but the commercial bank credit period normally is 1-3 years.Because of the manufacturing's unique production cycle,this make the enterprise production cycle and credit term mismatch,it brings the certain effect to the enterprise's cash flow.Therefore,with the continuous development of enterprises,financial risk management problems will become more and more complicated and diversified.About all kinds of financial risk management problems in the development of enterprises,risk avoidance measures should be taken in advance to improve the awareness of risk prevention.So as to effectively control and management,in order to reduce the financial risk caused by the mismatch of credit term.This paper studies the financial risk management caused by the misallocation of credit term.Firstly,based on the research and review of the current situation in the fields of term mismatch and financial risk management,this paper expounds the relevant theoretical basis,and deeply understands the theoretical background of term mismatch and the practical significance of financial risk management,as well as the substantial impact on the operation and.management of enterprises.Secondly,by introducing the actual case analysis:from the production enterprise organization structure is introduced,to understand the enterprise internal production process and product production cycle.And according to the financial situation of the enterprise before the credit granting of the financial institutions,analyze the financial indicators to determine the rationality and necessity of the credit granting of the commercial banks.Then analyze the financial data of commercial banks after credit granting,find out the advantages and disadvantages of various financial indicators under the condition of mismatching of corporate credit term to determine several potential causes of cash flow gap.Then on this basis,it analyzes the cash flow of each stage of the production cycle of enterprise products and the cash flow of commercial banks' repayment.By comparing the linear changes of the cash flow in each period,it finds out the root cause that the cash flow of enterprises cannot cover the cash flow of commercial banks' repayment due to the mismatch of credit term.Finally,according to the financial risk management problems obtained from the preliminary analysis of financial data,corresponding measures and suggestions are put forward for the financial risk management caused by the mismatching of credit term in order to improve the ability of manufacturing enterprises to deal with such financial risk problems.