Research On Risk Management Of Commercial Garage Deposit And Financing Business Of FAF CO.,LTD

China’s auto finance industry began to sprout in 2004 and is now experiencing a rapid growth stage.From retail auto finance to inventory financing,the economic benefits of financial services have become one of the important sources of automobile sales industry.Dealer inventory financing is a kind of financing mode widely used in the automobile industry.At present,the main way is through different guarantee methods.The dealers,banks and automobile manufacturers cooperate to pledge the vehicle certificate purchased by dealers or other pledge methods to the bank or manufacturer’s finance for financing,and the bank institution gives the dealer within the credit line A certain amount of cash or bill.The purpose is to enlarge the fund scale of dealers,optimize the inventory structure of distribution units,reduce the financing cost of dealers,relieve the capital pressure in the operation of dealers,and promote the sales of physical products of distributorsFirst of all,through literature research,the definition of risk assessment criteria factors,and then through the expert questionnaire to determine the evaluation risk criteria factors,using decision and laboratory analysis(DEMATEL)to explore the causal relationship between the risk factors,hoping to.provide a reference for FAF company in planning and formulating inventory financing business.The results show that among the risk factors affecting inventory financing business,the three most important factors are discount of quality,management strategy and internal audit procedure.On the performance of causality among the factors,the top management strategy and internal audit procedure are the most influential factors in the cluster,while the discount of quality,the risk of vehicle price fluctuation and asset liquidity are the factors that are greatly affected by other factors.According to the conclusion of this study,it is suggested that FAF company should pay attention to the three factors of discount of quality,management strategy and internal audit procedure in the overall inventory financing business risk framework planning,especially the impact of senior management strategy factors on the risk of inventory financing business.