The Research Of Reverse Factoring Model

Factoring has been proved to be effective in alleviating the financing problems of SMEs by a large number of theories and practices at home and abroad.However,the traditional factoring operation is inefficient.It is necessary to investigate the credit situation of each financing party and the authenticity and integrity of the accounts receivable.As a result,the cost of carrying out business for a single small and medium-sized enterprise is too high,and the factoring company also faces high credit risk.Reverse factoring is different from the traditional factoring business.As the main component of supply chain finance,reverse factoring takes the buyer of the core enterprise in the supply chain as the center of risk control.It introduces the core enterprise credit with higher credit rating into the supply chain and becomes the upstream supplier with lower credit level and insufficient collateral.Providing financial communications,accounts receivable management,bad debt guarantee and credit evaluation services,while enhancing the stability of the core enterprises in the supply chain,improve the efficiency of the supply chain operation.At present,there are two major trends in the development of reverse factoring,one is the platform of reverse factoring business,which combines the Internet with reverse factoring;the other is the core enterprise self-built commercial factoring company to carry out reverse factoring business.Compared with independent commercial factoring companies,the latter has tremendous advantages in risk control and capital channel.As more and more core enterprises realize the importance of supply chain management,self-built factoring companies will play a significant role in the future development of core enterprises.The research object of this paper is Suning Yunshang Group.This paper uses literature research,icon analysis,comparative analysis and case analysis to discuss the operation mechanism,main risks and the value of buyers and sellers of the reverse factoring model.By using the case study method,this paper discusses the business background,business plan and operation process of reverse factoring in the actual business of Suning Yunshang self-built commercial factoring company,and makes a comparative analysis on the cost accounting of suppliers in reverse factoring business.Afterwards,the paper analyzes the influence and reason of the reverse factoring mode of Suning Yunshang self-built commercial factoring company.Finally,this paper points out the related problems faced by this model,puts forward countermeasures and suggestions in view of the three aspects of capital flow,business development and risk control.Finally,the paper concludes that the reverse factoring business carried out by Suning Yunshang Self-built Commercial Factoring Company is a beneficial exploration and attempt for the development of new retail industry,and is independent.Compared with commercial factoring companies,Suning commercial factoring model has advantages in risk control,business development,capital acquisition and other aspects.It is feasible for core enterprises to carry out reverse factoring business model in large supply chain groups in China.