Research On Financial Risk Prevention Mechanism In New Buyer Credit Model

With the deepening of economic globalization,China,as a major manufacturing country,is faced with insufficient domestic demand,oversupply and the urgent need of infrastructure construction for the rapid development of emerging economies.The objective conditions are ripe for equipment manufacturers to conduct transnational trade and export high-quality products produced by China to emerging economies.But at the same time,emerging economies often don't have the wherewithal to make the infrastructure investments they need in the face of the global economic downturn.In this case,the new buyer credit model emerges at the historic moment and becomes an effective way for supplier enterprises to help customer enterprises with project financing through financial institutions.However,the new buyer credit model,as a new project financing model,not only helps suppliers to improve their performance and help customers to solve financing problems,but also causes greater financial risks to suppliers.This paper takes xinwei group as an example.Since xinwei group started the sales business based on the new buyer credit model in 2013,its performance has been improved rapidly in just a few years.However,at the same time,due to the new buyer credit model,xinwei group is also under great financial pressure,with its operating revenue exceeding 10 billion yuan,and the amount of external guarantee also reaching 10 billion yuan.At the same time,through the Shanghai stock exchange inquiry letter,hundreds of pages of reply notice of xinwei group and related media investigation,we can have an in-depth understanding of the new buyer credit model development process and internal operation mechanism,as well as the new buyer credit model to bring benefits to the enterprise at the same time,what problems it brings to the enterprise.Projects based on the new buyer credit model are usually infrastructure construction projects,which have the characteristics of long project cycle and large capital investment.Therefore,when the corresponding countermeasures and Suggestions are put forward for the financial risk prevention mechanism of the new buyer credit model,the corresponding mechanism optimization Suggestions are put forward from the perspective of business cycle.The formation mechanism of financial risk analysis and combined with the division of the business cycle to optimize supplier risk prevention mechanism,by means of risk sharing,risk compensation and risk transfer risk management methods,to suppliers based on a new mode of buyer credit risk control mechanism in the early stages of the project,the medium-term risk management mechanism and risk of late feedback mechanism optimization Suggestions is put forward.Based on the analysis of financial risk formation mechanism of new buyer credit cases,the corresponding financial risk prevention mechanism optimization countermeasures are put forward.It is expected that the buyer credit business case of xinwei group can provide reference for Chinese international engineering suppliers to effectively manage the financial risk formed when they carry out cross-border trade through the new buyer credit model,and for other suppliers in the industry to use the new buyer credit business for financial risk management.