Analysis On The Practice Of China’s Enterprises Accounts Receivable Securitization

The small and medium-sized enterprise already became important strength whichpromotes our country social economy continually, stable and the healthy development hasplayed the vital role in the market economy system establishment and in the urbanizationprocess. However, the narrow financing channels for SMEs, the limited banking facilities,coupled with the high cost of private debt financing, resulting in enterprises "loss blood" andseriously hampered its development. Enterprise asset securitization as an innovativefinancing has been gradually carried out in our country, the theory and practice hasaccumulated some experience. March15,2013, CSRC issued "securities company assetsecuritization business regulations" signs enterprise asset securitization business began rapiddevelopment. Accounts receivable as the product of commercial credit has become animportant part of current assets in the modern enterprises. Accounts receivable securitizationprovides a new financing channel and accounts receivable management for the enterprise.The article analyzes CIMC and China Netcom case，finding that accounts receivablesecuritization can reduce the cost the financing, improve financial structure and enhance theability to refinance. In practice, however, accounts receivable securitization have someproblems, especially lack the service for SMEs. In order to solve this problem, the articleproposes enterprise associated accounts receivable securitization and design the project byBaigou luggage industry. We should pay attention to the potential risks, especially the creditrisk. The article control the credit risk by before, during and after control system. Throughmacro, meso and micro analysis model to control for concentration risk. In addition, thearticle describes other problems and countermeasures, hoping to promote the practice ofenterprise associated accounts receivable securitization.