Port communicationThe relationship between commercial factoring and corporate credit management grows with the development of market economy，The credit sales model has become a payment logic generally accepted by both parties to the transaction.，However, this business model also makes accounts receivable account for an increasing proportion of the company's asset classification.，It has become one of the important obstacles for enterprises to improve their cash transfer capabilities.。
This obstacle mainly manifests itself in the following aspects:：one、High-risk environment for accounts receivable—The soft constraints of credit relationships are based on the factoring financing business generated by corporate accounts receivable.，To a large extent, it can truly and directly alleviate the business risks that may arise due to tight liquidity.。in a general sense，Factoring business is divided into bank factoring and commercial factoring。
Although bank factoring accounts for the largest share of business scale
Advantages
，However, for bank factoring, the applicant’s qualifications and ability are
Require
high，and requires sufficient mortgage or guarantee support，At the same time, it will also occupy its credit line in the bank.，Therefore, small and medium-sized enterprises usually cannot meet the standards of bank factoring.。Commercial factoring companies, on the other hand, value the quality of accounts receivable and the credibility of buyers.，Thus achieving complete transfer of unsecured and bad debt risks，Rather than a single seller qualification assessment。
So，For small and medium-sized enterprises with medium qualifications and financial strength，Commercial factoring is obviously more suitable。At present, my country’s commercial factoring industry lacks legal、Unified norms and guarantees of regulations and policies；At the same time, factoring companies are objectively unable to completely collect and manage the social credit information and data of enterprises in the current business environment.。therefore，Credit insurance as an effective risk management barrier，Hand in hand with commercial factoring success。
As a service that provides financing and credit guarantees in the form of buyout of claims on accounts receivable，The quality of accounts receivable is the key to determining whether factoring business can proceed smoothly.。Because there is great uncertainty in my country’s current credit environment,，corporate credit behavior、Many aspects such as credit supervision by government regulations and industry credit self-discipline have not effectively constrained the credit relationship between trading entities.，Resulting in uneven quality of accounts receivable，Companies are at higher risk of defaulting。
in this case，Whether it is for factoring，Or for customers (enterprises)，It will be difficult to find a point of convergence for cooperation and win-win results.。two、Uncertainty in inter-enterprise credit transactions—Credit sales are not standardized as an outsourcing service of accounts receivable，The way an enterprise's credit business operates has a great impact on the development of factoring business。
We found in practice，At present, most enterprises in our country lack standardized management of credit sales business.，Specifically reflected in the lack of planned management and overall credit risk control plan for credit sales from both sales and financial aspects.。
in this case，Enterprises are often unable to scientifically weigh the benefits and risks of credit sales as a whole，Therefore, it is impossible to make a decision on whether to need accounts receivable outsourcing services (such services require the enterprise to pay additional financing costs and risk-taking)
cost
）。in this case，An enterprise's credit business is often a random、unplanned、high risk process，It is difficult for factoring companies to provide factoring services for such business。
three、Lack of internal credit management within the enterprise—Exposed to higher buyer credit risk over time，The credit management of Chinese enterprises is almost a blank。Due to the lack of effective credit management systems and professional credit analysis methods, enterprises，Customer credit assessment level and risk control capabilities are low。This forces companies to face higher customer credit risks in credit sales.。in many industries，The overdue rate and bad debt rate of accounts receivable are both higher than the international average.。
in this case，Businesses are less likely to obtain accounts receivable outsourcing (factoring) services。Because fundamentally，Factoring business provides a financing service within the credit period。For accounts receivable that exceed a certain credit risk level，Factoring companies will also not accept applications for factoring business.。
in practical applications，Insurance companies cooperate with factoring companies，Conduct comprehensive due diligence on current factoring financing projects，Without the need for hard collateral assets，To provide as complete a picture as possible of the business background involved in the factoring business itself、Accounts receivable quality、Qualifications and capabilities of both companies、Make accurate and objective assessments based on historical transaction records and other aspects，Allow insurance companies and factoring companies to ultimately price the risk of factoring products。
In short，With credit insurance as a hedging tool，Commercial factoring companies can tailor structured financing solutions for enterprises，Financing based on transfer of accounts receivable and buyer's credit，Increase the efficiency and diversity of corporate financing。
Insurance companies also cooperate with commercial factoring companies，complement each other in risk management，At the same time, it replaces the credit guarantee function of factoring companies to a certain extent.，Enhanced the business quality and operational capabilities of factoring companies，jointly promote the healthy development of my country's factoring market。In order to prevent factoring companies from taking corporate integrity risks,
Require
Enterprises seeking factoring services need to meet certain conditions。
1、An enterprise's credit sales business should be customers with certain credit qualifications。If the credit ability of the customer provided by the enterprise is insufficient, the factoring business will fail.。That's it
Require
Enterprises must strengthen customers’ credit management capabilities，Continuously screen high-quality customers，Avoid high-risk customers。2、Credit sales need to be strictly regulated，Reduce transaction disputes。
Although factoring provides accounts receivable financing on a non-recourse basis，However, if the buyer refuses to pay for the goods due to transaction disputes,，The factor will waive the credit guarantee liability and recover the financing amount from the seller。therefore，Companies seeking factoring services first need to ensure the quality of their products and strictly fulfill their supply contracts.。at the same time，Enterprises should sign strict credit sales contracts under factoring with customers，Minimize the possibility of transaction disputes。
3、Need to weigh credit sales opportunity and risk cost，Overall planning of accounts receivable outsourcing services。Does the company need factoring services?，First depends on marketing strategy and financial financing strategy。under competitive market conditions，Use credit to expand sales，Will inevitably face the collection and cash flow risks of accounts receivable。at this time，
Require
Under the guidance of a unified credit management system and credit policy, enterprises，Properly arrange financing and risk control matters for accounts receivable。
in，Factoring should be used as an effective means for enterprises to obtain accounts receivable financing。For accounts receivable that have been in arrears，Businesses need to seek professional debt collection services。also，Businesses need to successfully obtain factoring services，A complete credit management system needs to be established，in，Using credit management methods to standardize accounts receivable management is a prerequisite。1、Enterprises need to establish a professional customer credit investigation and evaluation system。
The risk of accounts receivable mainly comes from credit customers (debtors)。Choosing the right credit sales partner is one of the key measures to control the risk of accounts receivable。Our management consulting practice demonstrates，The systematic credit investigation and credit rating carried out by enterprises on customers is an effective means to control the risk of accounts receivable.。
Generally speaking，Enterprises can only classify accounts receivable from customers with higher credit ratings as factoring business，Only then will it be possible to successfully obtain higher credit limit approval from the factoring agency.，This is also a prerequisite for factoring financing。Businesses that do not have the ability to conduct credit assessment and screening of customers，Due to improper selection of credit customers，It is often difficult to obtain credit line support from factors。2、Professional accounts receivable plan management should be implemented。
Weighing the risk cost and financing options of accounts receivable in terms of total volume is an important factor for companies to consider outsourcing (factoring) services for accounts receivable.。in，The total amount of accounts receivable and the average account receivable period (DSO) are not only related to marketing performance，It is also the main source of cash flow risk.。
Sales department needed、Finance department together with credit department，Marketing opportunity cost、income level、Make trade-offs and decisions on the total amount of accounts receivable from various perspectives such as financing costs and risk costs.。On this basis，Develop a plan to obtain accounts receivable financing through factoring。3、Establish a sales ledger recording and management system。
Factoring is usually a financing service provided for accounts receivable under each credit sales order.，therefore
Require
Enterprises can clearly record and distinguish accounts receivable for each sales business。This is quite different from the current accounts receivable recording and management methods of many enterprises in our country.。In management consulting practice we find，The accounts receivable records and management of some companies are mainly based on customers，Even a customer only keeps one general ledger。
This accounting and management method makes it difficult to start factoring business。therefore，Enterprises need to be based on orders，Implement sales ledger management method，Clearly and strictly record and manage the payment progress of each account receivable。4、Establish a strict account recovery management system。as said before，Factors generally do not provide specialized collection services。on the contrary，Factoring business requires the establishment of standardized account settlement relationships between enterprises and customers.。
therefore，Enterprises cannot rely on fully entrusting the responsibility for debt collection to factors.，Instead, you must first establish your own account recovery management system。These include：Be clear to customers、Public credit and collection policies、Strict aging monitoring system、Customer deferred payment approval system and credit risk assessment and disposal system。5.Pay attention to the hidden credit resources of enterprises：Business association reputation、Enterprise portal、Corporate news release WeChat public platform。
Corporate Magazine、newspaper、training、seminar、forum、Corporate annual report, etc.。Gold cup and silver cup are not as good as word of mouth，Today, with the rapid development of Internet finance,，Every piece of news targeting an enterprise may become the key to deciding whether the factoring company will do business with the enterprise.。
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