Study On The Economic Consequences Of The Securitization Of Accounts Receivable In The Construction And Decoration Industry

For the building decoration industry,there have always been the problems of fragile capital chain and large balance of accounts receivable.In addition,in recent years,real estate policies have been adjusted and upgraded,and the customers in the construction and decoration industry are also mainly in the real estate industry.This will inevitably affect the return of the construction and decoration industry.In the case of the real estate industry's own capital shortage,the advance money decoration often becomes the advance of winning the bid,which causes the scale of accounts receivable of enterprises to be larger and larger,and the capital situation to be deteriorated gradually,so the serious problem of accounts receivable occupying funds must be solved properly.Asset securitization provides a new way to solve the serious problem of account receivables occupying funds.By realizing the account receivables in advance,companies can obtain funds,the account receivables on the account are reduced,and the bad debt loss provision will also be cut back.As the top three in the construction industry,Guangtian Group first proposed securitization of accounts receivable,and carried out three phases within two years.In this paper,by studying the economic consequences of securitization of accounts receivable,it is found that the risk transfer effect is not good,the financial effect is strengthened in the short term,the financing channel is widened,but the financing cost is not reduced.A further study of the reasons behind its poor results revealed that there are three main aspects.First,the quality of basic assets needs to be improved,which is manifested in the fact that the regional distribution of basic assets is too concentrated and the proportion of basic assets involved in projects under construction and unaccepted projects is too high;second,the design of the plan is unreasonable,which is manifested by the lack of risk isolation mechanism,the lack of credit enhancement method and poor debt repayment methods;Third,the scale of securitization becomes smaller.It is precisely because of the above three aspects that the partial effect of corporate securitization is not good.Finally,suggestions are provided on how to improve and better carry out securitization of accounts receivable.