Effect Analysis And Risk Study Of Accounts Receivable Securitization

In recent years,China’s economic development is very rapid,all industries are expanding production scale.Due to the characteristics of construction industry such as long project cycle,high project investment and slow cash flow collection,if you want to expand the business scale,you need to consider the issues of financing.With the development of capital market,asset securitization develops rapidly,and the forms of asset securitization are gradually diversified.Based on the research of "the first phase of asset-backed notes of receivables issued by China Construction Third Engineering Bureau Group Co.,Ltd.in 2018",this paper analyzes the motivation,cost,financial impact and risk of the issuance of asset-backed notes.Through the analysis of its motivations,I found that there are a large number of accounts receivable in the assets of the construction industry.Although accounts receivable belong to the category of current assets,they still can not be realized in time.In the past,in order to solve the problem of capital flow,enterprises mostly choose the way of pledge or factoring of accounts receivable.Therefore,this paper compares the financing costs of the three ways we talked above.The results show that the financing way of asset securitization can greatly reduce costs and obtain higher financing amount.At the same time,through the analysis of its financial impact,I found that the group improves its operating capacity,capital structure and liquidity,and further improves its solvency and profitability by issuing asset-backed notes.Finally,this paper analyzes the risks of the basic assets and the transaction structure,and puts forward some suggestions.Based on the above aspects,this paper evaluates the effect of receivables asset securitization of China Construction Third Engineering Bureau Group,hoping to give other enterprises relevant references.