Research On The Financial Effect Of Accounts Receivable Securitization

With the continuous development of the market economy in our country,the competition is more fierce.The seller's market has been transferred to the buyer's market.The scale of the accounts receivable of enterprises is also gradually increasing.The costs and risks brought by it are also highlighted.Therefore,Accounts receivable management must to be an important part of modern business management.On the other hand,"financing difficulties" has always been a persistent problem for enterprises.In terms of debt financing,with the implementation of the national "deleveraging" policy,the scale of credit is limited and the difficulty of bank loans is increased.As equity finance,due to the high threshold and high cost,most SMEs do not choose.Securitization of accounts receivable can provide a new idea for solving the above problems.Since 2014,China's enterprise asset securitization market began to show an explosive growth trend.The total amount exceeded the highest level in history for several years in a row.However,due to the late development and the low recognition,there is still a big gap between the stock market and bond market.As for the enterprises,it is also a precondition for them to take advantage of the asset securitization to understand what impact accounts receivable securitization will have on the enterprises.I hope this article can provide new reference for the future decision-making of enterprises,and improve management efficiency.The article mainly analyzes the financial effect that the securitization of accounts receivable brings to the enterprise.Combined with the analysis of the problem of accounting treatment of asset securitization,this paper analyzes the financial effect of the securitization of accounts receivable from the aspects of cost,profit,risk and financial indexes.In the case analysis,I chose China Merchants Chuangrong-Jinke shares accounts receivable asset-backed as the analysis object.In terms of costs,the capital cost general formula and expiration rate method are two ways to calculate the capital cost of asset securitization of Jinke shares.In terms of profit,incident research method is used to calculate the excess profit rate and accumulated excess profit rate to analyze the plan.In terms of risk,the Z-Score model was used to analyze risk.In the aspect of financial indexes,the liquidity,profit ability and operational ability were analyzed comparatively.The main conclusions drawn from the above analysis are as follows: Factors such as the quality of the underlying asset and the credit enhancement methods will affect whether the securitized assets can be off balance sheet finance,thereby affecting the financial effects of the asset-backed securitization on the enterprise;The analysis yields the calculation formula for the financing costs of receivables securitization.Compared with other financing methods,when the demand for financing is small,the securitization of accounts receivable does not have an advantage.When the demand for financing is large,the financing costs of receivables securitization are relatively small.When the demand for financing is large,the financing costs of receivables securitization are small;the securitization of accounts receivable can bring a positive income effect to the company in the short term,and enhance the corporate value;the securitization of receivables can ease the pressure of solvency and solve the long-term corporate debt mismatch problem,and reduce the level of financial risks facing the company.