The Research Of Financing Model For Electronic Components Distributor ZW Company

With the rapid development of the local electronics industry, china is playing a leading role in globe electronics business. Fiercer and fiercer competition in the local electronics market leads less and less margin. Distributors as the upper supplier of electronics manufactory is facing more difficulties now. The end customers need their suppliers to provide the best price and the best payment term, so the distributors need too much money to keep their business go on. Most of distributors are small and medium company, the local financial market is crude at present, the small company is hard to get commercial loan from bank. This article summarize the financing solutions for small and medium company through theory and case analysis for ZW company.First of all, this thesis introduces the market environment of the electronic components and the financing environment. The next, We wil introduces the ZW company, and ZW company is typical of small and medium electronic components distributor. ZW company has a company’s financial problems about inventory pressure, amount of accounts receivable and accounts receivable cycle. According to the characteristics of the distributors, ZW companyput forward a variety of financing options:commercial credit financing, acceptance bill financing, logistics financial financing and commission financing, etc. The thesis introdues the concept, the characteristics, the note of each type of financing mode and give the case about each type of financing mode. The financing structure has changed by the applications of a variety of financing. In addition to the means of financing, ZW company can also have more means of financing, such as policy financing,warehouse financing, finance-transportation secured financing methods. Although these financing modes can solve the problem of the ZW company funds, the financing way also brought different risks to ZW company. in view of the financing risk, risk control measures are put forward.We can get a final conclusion, it is that commercial credit financing, acceptance draft financing, logistics financing and commission are effective financing ways for the small and medium sized distributors, which can solve the problem of financing in a certain extent.