Research On Credit Risk Management Of Credit Sales In SG Company

With the further development of the market economy,credit sale has become the main method for enterprises to rapidly expand their sales and occupy the market.Credit sale has huge advantages in stimulating purchasing power,enhancing market competitiveness and expanding market share.On the one hand,credit sale brings a considerable amount of sales revenue to enterprises;on the other hand,it also exposes enterprises to the risk of capital recovery.Improper credit sale may pose a fatal threat to the survival and development of enterprises,the reason is that the credit management consciousness of Chinese enterprises is weak and the customer credit management system is not fully formed.SG is in the fan industry which is of excess capacity and fierce competition.In order to maintain the market share,SG has carried out credit sales business with relatively loose credit policy.In that way,it has not only played a positive role in stabilizing SG's market position,but also puts the company at the greater financial risk.The specific performance are: the proportion of account receivable in business income is increasing;the proportion of bad debt and potential bad debt is rising.Therefore,credit risks which is arising from the credit sale must be delicacy managed.The research framework of this paper is as follows: first of all,the present situation of the company's credit risk management is deeply explored which is based on the theory of credit management and the actual situation of SG company.It is found that there are problems in the internal management mechanism of the SG company caused by the credit risk.Secondly,under the guidance of the scientific credit risk assessment method and credit management model,it is found that SG company has risks in the links of management mode,customer credit investigation,customer credit evaluation,credit decision,account receivable monitoring and overdue account receivable.Finally,it puts forward to construct the optimization of credit risk management which is combined with the actual situation of SG company and the optimization idea of full process control.We strive to improve the credit risk management of SG Company by the implementation of these optimization measures.It can also effectively control the credit risks and raise the level of credit risk management.