Research On Customer Credit Risk Management Strategy In Export Credit Trade Of Company C

The COVID-19 outbreak in 2020 has a huge impact on the global supply chain,with more difficult mutual trust between customers and higher default rate than in the past,which brings great instability to the foreign trade industry.Foreign buyers’ overdue,fraud,refusal of payment or other default events largely affect the export-oriented enterprises with low-risk resistance capacity.Credit sales are often inevitable for Chinese enterprises in exploring international market.Especially for some developed countries in Europe and the United States,the proportion of credit sales is higher than 90%.With the increasingly fierce market competition,credit sales have become an essential mean for enterprises to win customers,improve market share,and increase revenue.The neglect of customer credit risk management in export credit trade is detrimental to the development of enterprises.The arrears of accounts receivable and large amounts of bad debts seriously threaten the survival and development of enterprises.Failure to withdraw funds in time results in irreparable losses.Therefore,customer credit risk management has gradually become a decisive factor for enterprises’ survival and development.How to effectively manage customer credit risks in the situation of export credit trade is a key to the survival and development of enterprises.Only by establishing and improving customer credit risk management mechanism,can enterprises avoid the negative impacts of credit sales.This thesis mainly takes Company C,which specializes in export business of mechanical and electrical products,as the research object.Whole process credit risk management theory,information asymmetry theory and credit risk evaluation theory are used for reference.Based on Company C’s current customer credit risk management in export credit trade,this thesis adopts various research methods including literature review,case analysis,qualitative and quantitative,practice with theory etc.,to analyze the outstanding problems from company C in the management of customer credit risk beforehand,during the process and after the event.Then,the causes of these problems are deeply analyzed.Lastly,this paper puts forward feasible optimization strategies in the management of customer credit risk beforehand,during the process,after the event and supporting measures of Company C,so as to cover the main stages and key control points of customer credit risk management,to form closed-loop credit management of transaction.The project has strong operability and practicability.It proposes credit risk management solutions in export credit trade,which can help Company C control credit risks of customers in export credit trade more effectively,improve the overall level of credit risk management,which is of great significance for the sustainable development of the enterprise.In previous literature,the theories of corporate credit risk management are more focused on finance or the other fields.There are few cases or documents concentrating on the practical application of the export credit trade industry.The innovation of this thesis mainly takes customer credit risk control as the entry point,to study the customer credit risk management of export enterprises in credit trade from the perspective of Company C with actual risk cases.It expands the field of practical application of risk management,paying more attention to the improvement of corporate competitiveness in the implementation process.This thesis has certain reference value for building customer credit risk management system under credit trade,improving the ability of customer credit risk resistance of export enterprises,assisting export enterprises in enhancing competitiveness in the international market,expanding market share,and further accelerating the pace of "going out".Through the research in the customer credit risk management of Company C,this paper mainly draws the following conclusions:(1)Generally speaking,under the export credit trade,the effective management of customer credit risk plays a significant role in the survival and development of enterprises.With the increasing scale of Company C’s export credit trade business,there are still some outstanding problems in customer credit risk management,such as incomplete customer credit investigation and evaluation in advance,unscientific application of customer credit policy and creditor protection policy during the process,and lack of customer accounts receivable and delinquent receivable management afterwards,which are not conducive to the steady development of Company C to a certain extent,and it is urgent to formulate a practical and feasible customer credit risk management solution in line with the actual situation of Company C.(2)According to the analysis of problems existing in customer credit risk management of Company C,the main Company C customer credit risk management measures are not effective,some internal and external factors on Company C customer credit risk management caused by adverse effects,so that Company C customer credit risk management effect is not ideal,and did not achieve the expected management objectives.(3)Customer credit risk management,as an important part of Company C’s management,is of great significance to the survival and development of Company C.To solve the problem of customer credit risk management in Company C fundamentally,Company C should strengthen customer credit risk prevention beforehand,control in the event,management afterwards,and formulate safeguard measures,so as to make the company get long-term development.