Research On Development Strategy Of Commercial Factoring Business Of Shenzhen Lirong Commercial Factoring Co.LTD

With the deepening of globalization and China's economic development,import and export trade has become an irreplaceable important part of the economic development of all countries.Factoring,which provides corporate credit and credit management,is also growing.At present,China's factoring business is mainly bank factoring,accounting for about 63% of China's factoring business.Bank factoring is characterized by too strict requirements on enterprise qualifications and generally unable to meet the credit enhancement needs of small and medium-sized enterprises.Therefore,compared with commercial factoring companies,bank factoring cannot fully meet the increasing needs of China's import and export trade.With the acceleration of China's financial market reform and the improvement of people's convenience,commercial factoring with simple operation has gradually become an important direction for the development of new factoring in China.Commercial factoring can quickly realize the value transmission of core enterprises to small and medium-sized enterprises,change the business model in which financing enterprises are the credit granting subject in traditional financing business,solve the problem of insufficient financing of small and medium-sized enterprises,and more comprehensively understand the transaction status of both sides in factoring business.How to make reasonable strategy according to the objective economic environment and ensure the stable development of factoring is an urgent problem to be solved.In this context,this paper studies the factoring business development strategy of Shenzhen Lirong Commercial Factoring Co.,LTD.Based on the theory of enterprise strategy and literature review,this paper studies the development strategy of the factoring business of Shenzhen Lirong Commercial Factoring Co.,LTD.By using the methods of literature analysis and investigation.Firstly,this paper introduces the basic situation of Shenzhen Lirong Commercial Factoring Co.,LTD.and the development status of its commercial factoring business,and analyzes the problems existing in the implementation of its factoring business strategy.The problems of strategic positioning,cooperation with upstream enterprises and business types are pointed out and the causes are analyzed.Secondly,the PEST analysis model is used to analyze the company's micro-environment and the degree of industry competition on the basis of analyzingthe political,economic,cultural and technological external environment of Shenzhen Lirong Commercial Factoring Co.,LTD.Based on this,SWOT analysis model is used to summarize the company's strengths,weaknesses,opportunities and threats,so as to prepare for the subsequent strategic choice.Finally,it explores the formulation and implementation of the company's development strategy and strives to become a well-known commercial factoring financial service provider in China.The most suitable commercial factoring development strategy of l Shenzhen Lirong Commercial Factoring Co.,LTD is the related diversification strategy and the backward integration development strategy.Through relevant diversification strategy,the company focuses on developing reverse commercial factoring products,enriching the product structure of the company,and providing diversified commercial factoring services for smes with financing difficulties in the industry.At the same time,aiming at the existing commercial factoring market,the secondary development of the existing market,and further expand the steel industry commercial factoring business market,and further expand the company's commercial factoring business scope.Finally,we strengthened cooperation with upstream enterprises and achieved the goal of reducing the interest rate range of commercial factoring by 50%.In terms of the company's internal management,the company optimizes the organizational structure,talent introduction,system guarantee and financial support,so as to make it a powerful backing for the company to achieve the strategic goal.Through this research,we hope to provide some ideas for the development of commercial factoring business of commercial factoring companies.