Research On The Financing Effect Of Accounts Receivable Asset Securitization

With the deepening of the reform of RMB internationalization and interest rate marketization,my country’s ABS has entered a new era.As a financing method,ABS has attracted people’s attention since its inception.In September 2018,the State Council issued the "Guiding Opinions on Strengthening the Asset-Liability Constraints of State-owned Enterprises".It has become a political task for central enterprises to reduce the asset-liability ratio.At the same time,for non-listed companies,more financing comes from debt financing.In this context,the financing of state-owned infrastructure industries has become their top priority.Accounts receivable is also a major problem in the daily operation of such enterprises.Combining accounts receivable and financing should have a great positive effect and influence on central enterprises in the infrastructure industry.Based on the above research background and the author’s own internship experience,this article first sorts out the relevant literature of ABS from five aspects,namely definition,financing cost,effect,risk,and “out of the table” in order to provide some advice on asset securitization financing for Chinese infrastructure central enterprises.Secondly,take K company’s account receivable asset securitization project as a case,using the case study method to collect relevant data from K company,and then study its impact on K company from the three aspects of financing cost,effect and risk.After research,the following conclusions are obtained: Firstly,ABS on accounts receivable can reduce corporate financing costs.Secondly,the short-term solvency and profitability of enterprises can be improved in the short term through the financing of accounts receivable securitization,but it is not necessary to improve the company’s operational capabilities.Thirdly,the ABS of accounts receivable that reaches the "out of the balance sheet" can indirectly reduce the company’s debt-to-asset ratio.Fourthly,most of the risks of the securitization of accounts receivable assets undertaken by enterprises are within the controllable range.Fifthly,the current liabilities of K company are relatively large,resulting in too small Z value data,and there are certain operating risks.The summary can be concluded as following words: companies with a large amount of accounts receivable and a background that requires a large amount of financing can carry out the securitization of accounts receivable assets.The state-related asset securitization systems and regulations are constantly improved,and companies can follow the footsteps of the state to seize the opportunity and attempt to do it.