On the new context of accounts receivable management new ideas - "Marketing + financial services"

[Papers Keywords expand domestic demand and credit accounts receivable financial services sales tip
[Abstract] This paper analyzes the expansion of domestic demand in the context of the development of domestic trade constraints encountered in the primary status of an accounts receivable and the impact of its business, combined with their practical experience should be resolved accounts receivable issues a new set of solutions.

A background of domestic trade
Zhang Zhigang, CPPCC National Committee members at the Third Session of CPPCC National Committee first plenary meeting on the second, to expand domestic demand in China's economic development strategic approach to long-term adherence, which is the economic future of China's inevitable choice for sustainable development.

Minister of Commerce Chen Deming has pointed out that China's plan to promote domestic consumption, the world started to benefit the Chinese domestic market has great potential, and will be further augmented in the expansion of domestic demand, including improving the consumption environment, improve residents' income, improve income distribution structure and so on.

Thus, expanding domestic demand and stimulate the national economy, China has been mentioned at this stage is an important strategic height.

2 the need to expand domestic demand
Expansion of domestic demand has important strategic significance, not just expedient.

For a long time, dependent on exports is driving China's economic growth has been an important factor, but three quarters of 2008, China's export growth over the previous year dropped by 4.8 percentage points. The reason is that the world economic slowdown, and thus China's exports have greater impact, so we can not passively waiting for the international economy pick up, but must take the initiative to seek to develop new ways to expand domestic demand, so it becomes essential.

China is a big country, a vast territory, population and consumption, domestic demand and thus greater market potential is huge and, when the international economic crisis, the country's great room for maneuver.

From another perspective, the expansion of domestic demand but also provides us with new opportunities for development, will help promote the domestic production structure and consumption structure of strategic change, so that the overall economic performance to a new level.

However, expanding domestic demand, the development of this good on the road, but encountered many constraints, the most prominent is the issue of debt default, the credit among enterprises, domestic problems, so you want to expand domestic demand and overall depth of investment to China market economy, it is necessary to solve the company's accounting problems.

3 business accounting issues (accounts receivable "triangular debts")
As the market economy, establishment and improvement of enterprises and between enterprises to provide commercial credit has become an increasingly common phenomenon, therefore, increasing the amount of corporate accounts receivable, accounts receivable management has The liquid assets become an important part of businesses to provide commercial credit, take credit approach, make enterprises a significant increase in the amount of accounts receivable, cash recovery time longer even make the company suffer a loss of accounts receivable can not be recovered But credit can also expand sales, increase their market share and profitability, therefore, accounts receivable management, the basic goal is to give full play to accounts receivable functions, balancing of accounts receivable investment revenue generated, costs and risks to make a pro-business accounts receivable policy.

3.1 causes the accounts receivable business
One is to increase sales. Business selling products can take two basic methods, namely, current sales and credit Obviously now selling pro-business, credit advantages for customers, but in the competition more intense, and the buyer's market to the mainstream in the case , credit is an important way to promote sales. the credit business, in fact, to provide customers with two transactions: first, sell products to customers; the second is for a limited period of time to provide funds to clients, although credit only affect the customer sales factor, but in the monetary tightening, the market weakness, capital plaque cases, credit the promotional role is very clear, especially in the sales of new products, new markets, the credit has more important.

The second is to reduce inventory. Enterprises to hold finished goods inventory, it is necessary additional management fees, storage fees, insurance and other expenses; the contrary, accounts receivable held by an enterprise, there is no need of these expenses, while the increase in accounts receivable means that the finished product Decrease in inventories, finished goods inventory reduction on the one hand can reduce these expenditures, but this can increase the company's liquid assets, and improving the current solvency, modification of the company's financial indicators, therefore, whether it is seasonal production enterprises or non-seasonal production companies, when companies finished higher, should generally be a more favorable credit terms to credit, the inventory into accounts receivable, reduce finished goods inventory, saving all kinds of expenses.

In summary, we can easily find credit in strengthening the competitiveness of the enterprise market, expand sales, increase profits and save other stock funds used in settlement with incomparable advantages.

However, the relative current sales, the credit will inevitably lead to companies holding large accounts receivable, accrued since the actual cash inflows and cash inflows are inconsistent in time, you can place the appropriate opportunity costs, bad debt costs and the corresponding accounts receivable management costs, thus affecting the financial condition and operating as usual.

3.2 The impact of corporate accounts receivable
Impact on the business accounts receivable mainly from two aspects:
1) high receivables directly affect the cash inflows, directly caused the financial crisis continues to expand business through sales of credit, and credit is behind the rising accounts receivable, many companies with good earnings in the next , due to poor management of accounts receivable and facing a financial crisis. Many of our corporate profits often have no money, book money, but doing well on the status of plaque, a serious impediment to further development of enterprises.

2) accounts receivable bad debt risk impact on corporate profits. Overdue receivables
Direct-to-business accounts receivable reflected in the risk of default risk on, according to Statistics more than one year overdue accounts receivable, accounts of their recovery success rate of 50%, while in our accounts receivable has been overdue for more than 60%. China's enterprises, especially state-owned enterprises, but did not actually become a bad deal for the widespread instances of bad debt, there are hidden losses of factors, some companies even if a serious legal process in accordance with accounting standards and the enterprise has been liquidated.

"Triangular debts" by many economists as the "Chinese characteristics" of the vocabulary and phenomena in the 1990s, companies' debt default "problem has been rampant in the Chinese industry a moment, the collapse of a number of companies, when companies" Repudiation "rampant, and who Repudiation more will come the greater the benefit, so that in literature and art to a" mom seeking Bailao debt, "the piece, spicy satire of society at that time the credit situation.

3.3 Accounts Receivable Status
According to an investigation, China's enterprises accounted for the liquidity of accounts receivable accounted for more than 50%, far higher than the level of 20% in developed countries among enterprises, especially payment arrears between state-owned enterprises, resulting in overdue accounts receivable models high, the economy has become a major chronic, according to statistical analysis of professional bodies in developed market economies, companies generally do not overdue receivables more than 10% of the total, while in China, this ratio up to 60 % or more.

The current status of our accounts receivable is mainly manifested in the following two aspects.

1) Accounts receivable, net high, according to the National Bureau of Statistics showed that between enterprises of the "triangular debts" in the size of the end of 2000 had accumulated to 1.2 trillion yuan, of which more than three months in arrears reached 0.8 trillion yuan; As of the end of June 2002, the enterprise accounts receivable, net 1.53 trillion yuan, an increase of 3.5% over the previous year, an increase than in May increased by 0.3 percentage points.

2) with a big gap between the developed market economies. Our corporate average bad debt rate of 5% to 10%, average period of accounts in arrears is more than 90 days, while the developed market economy of the United States, the average bad debt rate is 0.25% to 0.5% accounts in arrears period is 7 days on average, a difference of 10 times.

Meanwhile, the U.S. corporate credit as high as 90%, while only 20% of such a large gap between the enterprise's competitiveness compromised.

To sum up, China should expand domestic demand, we must first learn to credit, credit to learn, so that significantly enhance the competitiveness of enterprises, while the market is greatly enhanced flow of resources to meet the domestic and international competition.

4 new situation offers the solution to the problem of accounts receivable
Through the purchase of accounts receivable can solve social insurance, sale of receivables to the bank, etc. However, in practice, banks, insurance companies and other enterprises have a high threshold for qualification, and enterprise end-customer requirements are also high, and its handling procedures are complicated, many businesses have been shut out. Links to free download http://www.hi138.com has a strong financial advantage in the set Electromechanical Import and Export Co., Ltd. (the set Company) for the unit under the jurisdiction of the SASAC, the majority of market networks; also has a wealth of marketing experience, so we go through in-depth understanding of the market, combined with the characteristics of the Division for the accounts receivable of the market problems have put forward a set of effectively solve the effect of the program, the majority of enterprise solutions for accounts receivable problems.


4.1 marketing, financial services in ways
Figure 1 is a flow chart of our program, the specific manner of goods suppliers and end users

Credit will reach, by the Division I signed the end user of goods and cargo sales agreement, and with the manufacturer of goods or supplier of goods entered into procurement contracts; and our procurement of goods by the manufacturer or supplier of goods, and to take paid their dues hand delivery to pay for the purchase price, in order to shorten the manufacturer of goods or supplier of the reimbursement cycle; and goods needed by our goods sold to end users, corporate accounts and the transfer of risk, borne by the relevant Division I debt risk.

Meanwhile, our imports and exports for the domestic industry's leading enterprises, it has a good market reputation and a wealth of trading experience, relying on these advantages, users can also expand our sales market, expand customer product sales channels.

4.2 Success Stories
1) successful purchase of Medical equipment in Germany, sold to the First Affiliated Hospital of Xinjiang Medical University, and was the first time after delivery payments to equipment suppliers. Solved the hospital for the foreign payment cycle length of the question.

At present, Medical device manufacturers with the long-term cooperation to reach consensus, and there are a number of projects with the vendors.

2) successful purchase of U.S. Medical device for sale to the Xi'an Central Hospital, and the letter of credit payment to the United States of foreign equipment manufacturers, while the use of our extensive experience and social resources for the import of equipment manufacturers successfully completed the import work. for the foreign-funded enterprises to solve the problem of hospital payment cycle length.

At present, Medical device manufacturers with the long-term cooperation to reach consensus, and there are a number of projects with the vendors.

3) In addition, our company and the domestic electronic digital equipment supplier, signed a long-term cooperation agreement for the settlement of accounts receivable collection cycle is long, risky and other issues.

5 Conclusion
In summary, the development of credit sales, help to expand domestic demand, stimulate consumption growth; help accelerate cash flow, improve economic efficiency; help to enrich the means of financing, bank credit and commercial credit to promote the coordinated development, ease of small and medium corporate financing difficulties; help optimize the credit market environment, improve the social credit system.

Meanwhile, with increasing market competition, enterprises should not be eliminated in the competition, to stay competitive, we must strengthen their internal management, accounts receivable management as an important aspect of working capital management should attract attention of corporate managers , while enterprises should further consider its own accounts receivable for the transfer of healthy, accelerate the flow of corporate funds rate, to increase their market competitiveness.

Currently, the state proposed in the bank on the basis of consumer credit, to encourage large retailers to carry out credit sales directly to consumers, to encourage retail and commercial banking, credit guarantee companies to carry out various types of credit sales, the expansion of current consumption. Share on free download http://www.hi138.com