Research On Risk Of Early Warning Pledge Financing Of Accounts Receivable Of YG Company

In China’s huge economic volume,small and medium-sized companies account for a very large share,solving a large number of employment problems for the society,contributing nearly 70% of GDP,is the stabilizer of China’s economy.Such a large volume of small and medium-sized companies will inevitably lead to white-hot competition,which makes it difficult for small and medium-sized companies to move in the red sea of competition.The most important factor that restricts the competitiveness of small and medium-sized companies is the narrow financing channels and lack of sufficient operating funds to support the expansion of the company.Because of the imperfect scale and management of small and medium-sized companies,the bank loans they can get are relatively low and can not meet the company’s needs.Therefore,small and medium-sized companies generally choose the innovative financing mode of accounts receivable pledge financing to finance in order to activate accounts receivable and obtain working capital,but this innovative financing mode also has certain risks.On the basis of fully absorbing and drawing lessons from the previous research results and experience,this paper takes YG Company as an example,uses the method of case analysis and model analysis to discuss the current situation,existing problems and reasons of YG Company’s accounts receivable pledge financing business,and builds a risk early warning model and corresponding safeguards.Firstly,this paper elaborates the background and significance of this topic,and introduces the research ideas of this paper.The insufficient working capital of YG company hinders the development and growth of the company.In order to solve the financing dilemma of the company,YG company chose the financing mode of pledging accounts receivable.But at the same time,it alleviates the financing dilemma of the company,and at the same time,it also produces corresponding risks.And establish risk early warning mechanism.Secondly,it explains the definition of pledge financing of accounts receivable,the process of pledge financing,the effect of pledge financing and the status quo of pledge financing.Through the analysis of the status quo of pledge financing business of YG Company,it finds out the risks existing in the business and analyses the causes of the risks,including the low amount of pledge financing,the low accumulation of financing credit,the low ability of early warning and identification,and the post-loan management.Risks such asinadequate management.So we build SME model to warn the risk of pledge financing,and point out the effectiveness of the model.YG company can not get the financial data of customers in the capital market,and can only warn according to the historical data in the financial report.SME model accords with the characteristics of the company.By calculating the distance between the debtor’s current situation and the default point,we can predict the risk.Police,help YG company to screen high quality accounts receivable for financing.Finally,we should establish corresponding risk early warning safeguard measures,from improving the financing environment of pledge of accounts receivable to improving the company’s post-loan management system,mainly including regular financial training,implementing post responsibilities,formulating collection policies and establishing harmonious relations with banks.While ensuring the effective implementation of the risk early warning model of pledge financing,we can also carry out early warning of risks,so as to ensure the quality of accounts receivable.Mortgage financing business can give full play to its advantages and better serve SMEs financing.Previous studies mostly focus on the risk of pledge financing of accounts receivable from a qualitative point of view.This paper quantifies the risk probability of pledge financing by constructing a risk early warning model,which helps to reduce the risk of pledge financing of small and medium-sized companies more effectively and promote the long-term development of the company.At the same time,it is hoped that it can provide reference for the risk study of pledge financing business of small and medium-sized companies.