A Study On The Problems And Countermeasures Of Customer Credit Management Of Company S

With the rapid development of economy and the ongoing improvement of China's market-oriented economy system,the commodity economy has changed from a seller's market to a buyer's market.The trade war between China and America is not only a rivalry for technology,but also a rivalry for market.Considering the fierce competition in the industry of integrated circuit manufacturing,the large investment in initial fixed assets,and the rapidly changing market with ups and downs,how can enterprises be more competitive and still highly profitable in this environment? It is of great importance for enterprises to produce products rich in technical content and have constant and stable sales.However,constant and stable sales are inseparable from high-quality customers,thus credit sale is one of the main marketing efforts.On the one hand,in order to occupy more market shares and increase sales,enterprises desire loose credit policies;on the other hand,a lot of accounts receivable and credit risk will thus be incurred,i.e.insufficient funds of downstream enterprises leading to arrears of goods,which in turn will result in adverse consequences such as tight funds,insufficient cash flow,and slower turnover of working funds.How to choose high-quality customers and grow together with them will be an important choice for enterprises.As the saying goes,“He who does not have credit cannot stand firm”.The same is also the true for enterprises.While expanding sales,whether enterprises' accounts receivable can be recovered in time also poses huge risks to the enterprises' operation and management.If the customer does not keep the word,or the enterprises misuse customer credit management and control,it will incur such operating risks as receivables to become bad debts,loss of customer,decline in profit,and ultimately loss of the market.Therefore,it is of great practical significance and theoretical value to study enterprises' customer credit management to reduce the loss ratio of bad debts and operating risk,speed up cash return,and ensure profit quality.This paper,taking Company S as the case,makes a thorough analysis of its concrete situation on the basis of a large amount of literature and the experience of internship in the company,pointing out its problems in customer credit management,such as vague regulation on the standard of line of credit,neglecting the credit management of regular customers,lacking efficient solutions to customers' recoverable except e-mailing or calling,and under-emphasis of the management.After analyzing the causes of these problems,namely,incomplete customer credit management regulation,vague regulation on the standard of line of credit,unclear party responsible for customer credit management,faultiness in management process,inefficient solutions to the customers' overdue payment by e-mailing and calling,non-standard signing and verifying processes,insufficient incentives for employees,etc.,the paper proposes feasible solutions.In addition,a whole-process enterprise credit management model is introduced into the customer credit management system so as to construct a complete customer credit management evaluation system suitable for Company S.The introduction of whole-process enterprise credit management helps to complement the theoretical basis,reasonably evaluate customers,manage customer credit in multiple dimensions,maintain a balance between performance and credit sale,and promote a better common development with customers.Hence,for the customer credit management activities in Company S,it is highly significant for us to give full play to its role and make it operate in a better status in order to plan for future economic activities with refinement and sustainability.Therefore,the paper proposes that customer credit management strategy of Company S lies in making full use of credit culture,establishing customer credit control and management department,pre-transaction credit identification system,mid-term credit control,and post-transaction credit evaluation and treatment.Accordingly,risk management should be optimized from the following aspects:(1)Give play to the appealing role of credit culture,establish core values,standardize credit standards,and advocate from top to bottom.(2)Establish customer credit control department,clarify the responsibilities of credit management department and related credit control and management department,and the performance evaluation of credit control and management department.(3)Establish pre-transaction credit identification system,including the establishment and improvement of customer credit files,customer credit investigation,credit analysis and decision-making,system setting and support.(4)Strengthen mid-term credit control of transactions,including annual updating and evaluating of customer files,management of customer's line of credit,protection measures of creditor's rights,and control mechanism and relevant proceedings in case of default.(5)Refine post-transaction credit evaluation,including aging analysis of accounts receivable,management of overdue accounts receivable,collection methods of overdue accounts receivable,and treatment of bad debts.