M Corporate Credit Trading Under The Customer Credit Risk Management Model

In a perfect competition trading environment, the control of enterprise operation risks has become a key factor. For export-oriented enterprises, the top focus is then the sound collecting of their account receivables. Therefore, the establishing of a scientific management system under export credit sales term has inevitably become one of the key credit management points to achieve the goal of successfully collecting of accounts receivables.Chinese Enterprises have to accept open account payment terms in its process of exploring the international market especially for entering American and European markets. This paper, taking enterprise M as the target enterprises for studying, begins with the elaboration of the basic theories on credit risk management, by systematically analyzing the main causes of the credit risk and its current managing status on its credit risk management in enterprise M, concludes the problems existing in the current credit risk management process of M enterprises. Based on above, the paper, adopted the export flow chart of enterprise M and also the scientific "3+1" credit risk management theory, and then proposed the practical credit risk management mode for enterprise M. Furthermore, the paper also put forward the key designing points for the credit risk management for enterprise M's American subsidiary and its Thailand sales office pattern based on the credit management risk mode just established. The establishing of the above managing system has successfully decreasing or eliminating the credit risk of its account receivables for enterprise M for transactions going through credit sales exporting. Meanwhile, this paper may contribute some positive reference to other exporting enterprises.