Rent-by-Sale Business Improvement Credit Management Research Of Haide Co.,Ltd

In 2008,China began to implement macro-control and the construction projects were greatly compressed.In order to compete for market occupancy,many machinery manufacturers started to abandon the cash sales model and choose credit sales.Those big enterprises mainly choose the mode of financial leasing,while minnor enterprises can only use the Rent-by-Sale model to perform black-box operations in order to expand their sales before they can obtain qualifications.Since 2010,Haide Company has launched the Rent-by-Sale business.Although sales have increased in the past few years,the problems emerge one by one.Sales have not presented a continuous growth,yet the financial situation has deteriorated rapidly.Accounts receivable increased,yet cash flow decreased.Therefore,Haide Company began to improve the credit management of the Rent-by-Sale from the end of 2014.Firstly,change the original Rent-by-Sale mode which only puts emphasis on sales,instead combine "rent" and "sale".Based on this,improve the credit rating index system,quantify various rating indicators,and increase relevant factors measuring customers' lease credit.Secondly,with the importance of financial processing in Haide,treating accounts receivable correctly,sticking to the aging analysis of accounts,and checking account regularly are all emphasized to help the company adjust the collection strategies.Moreover,improve the organizational structure of credit management,increase the credit management department and the audit department.Methods for transferring credit risk are usually handled through factoring,pledges and trusts which Haide can rely on the length and needs of accounts receivable to make the choice.Finally,Haide also pays attention to taking measures from the perspectives of ideological concepts and operational mechanisms to provide guarantees for the improvement of credit management.After Haide improves the original management,various indicators in Haide have big changes,that is,the main business income has increased,the financial indicators have fully improved,and the market share of major products has increased,which basically reaches the expected effects of Haide.