| The steady development of the domestic financial market has created a good environment for the emergence and maturity of financial innovation.Asset securitization,as one of the innovative financing methods,has the unique advantages of low credit risk and low financing costs.Its applications have been quickly promoted and gradually become a useful supplement to the financing channels of numerous private enterprises.In recent decades,with the promotion of urbanization and rural revitalization policies,the domestic architectural decoration industry has developed vigorously.In the stage of the new normal of China’s economy,the promulgation of relevant policy documents,the rise of new business models and smart technologies have provided unprecedented opportunities and challenges for the industry.In the fierce market competition,architectural decoration companies not only have to solve the problems of high financing costs and few financing channels,but also face the pressure of capital management from long project cycle,high proportion of accounts receivable,and slow collection speed.Thus,on the path of enterprise transformation and upgrading,there are many obstacles.This article selects GT Group Co.,Ltd.,a leading company in the architectural decoration industry,as the research object,and uses case study methods to discuss three times projects for the securitization of accounts receivables of the company in 2017 and 2018 in depth.Ultimately,the article expounds the research background and significance of this thesis,and introduces the definition of related concepts and theoretical basis.Combined with domestic and foreign documents,this part will also summarize the overview of accounts receivable securitization providing a theoretical basis for the case analysis.Then,this article introduces the projects in detail from four aspects including product introduction,participant situation,plan implementation and contract performance.On this basis,the paper analyzes the motivation for GT Group to implement the securitization projects,the designing,accounting treatment,risks and effects of the securitization project.The research in this paper found that when GT Group faces multiple financing including platform transformation and smart technology applications,they are constrained by bank credit requirements and limited financing channels.They chose to use the accounts receivable securitization as a new financing methods,which can satisfy the company’s financing needs,enhance the company’s development capabilities,reduce financing costs and release positive signals to market investors.What’s more,the basic assets are released through structured design,which can revitalize the company’s stock assets,improve asset operation efficiency and reduce financial risks.Finally,this paper concludes that asset-backed securitization can break the deadlock in financing channels for asset-light enterprises and help enterprises to transform and develop more smoothly.When designing special plans,it is necessary to rationally design transaction structures and perform professional judgments on accounting treatment to ensure that the advantages of securitization financing are reflected.At the same time,in order to ensure the smooth implementation of the projects,the company needs to strengthen the management of accounts receivable and optimize related business processes to improve the credit rating of asset-backed securities and reduce the risk of overdue cash flow recovery.This is also a good opportunity to realize the two-way enhancement of financing activities and internal management.GT Group have a strong demand for expanding financing channels and the typical characteristics of revitalizing accounts receivable.Hence,this paper elaborates and analyzes the case of GT Group,summarizes the financing effects and advantages of accounts receivable securitization,and discusses the implementation risk from the sponsor’s perspective,so as to provide reference for the enterprises facing the same type of financing dilemma. |
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