Second, the risk management of accounts receivable
The risk of accounts receivable is the uncertainty of losses suffered by accounts receivable. This uncertainty mainly refers to whether the loss occurs and the size of the loss is uncertain. So how to judge whether the loss of accounts receivable occurs? We believe that losses will occur when enterprises fail to recover specific accounts receivable in full and on time. The factor that causes the debtor to fail to repay the debt in time is the source of risk. The risk management of accounts receivable is a process for enterprises to identify, evaluate and control the losses of accounts receivable. The goal of risk management of accounts receivable can be divided into two parts: the goal before loss and the goal after loss. The former is to avoid or reduce the possibility of loss; The latter is to minimize losses.
(A) risk identification of accounts receivable
As mentioned above, the factors that cause enterprises to fail to recover accounts receivable in time and in full are the source of risks. Risk identification is the basis of risk assessment and risk control.
In the process of risk analysis, find out the risk factors of enterprise accounts receivable, and link these risks with the business processes of enterprise sales and collection, so as to find out all kinds of potential risks. Here are a few examples:
1. Trade disputes between the two parties to the transaction;
2. Poor customer management, unable to repay due debts;
3. The counterparty intends to occupy enterprise funds;
4. Intentional commercial fraud by the counterparty.
For each of the above reasons, we can continue to investigate and find out the reasons. For example, in the case of a trade dispute between the two parties to the transaction, it is necessary to see that the specific terms in the contract are not clear, or the product quality is defective, which leads to customer dissatisfaction and refusal to pay; The latter three situations are the business processes of reviewing credit policies and sales collection. When approving credit sales, whether there is an evaluation of the credit status of customers, whether to sell credit to unqualified customers, whether to give customers an inappropriate credit line, whether there is unauthorized approval, and whether there is collusion between sales personnel and customers to harm the interests of enterprises.
Risk identification is inseparable from the close cooperation of relevant departments, especially the sales department. We know that customers often deliberately hide some information that they don't want to disclose, and some customers even deliberately provide false credit status information, which makes the customer information held by enterprises incomplete and untrue. It is very useful for us to default on employees' wages, frequently change supervisors, and start selling real estate. By interacting with customers directly, salespeople can most easily understand the situation of customers and find abnormal behaviors of customers. If we can train sales staff and improve their ability to capture customer risk information, it will help enterprises find risks as soon as possible, especially when they are deceived by businesses. If the enterprise can detect it in time through the sales staff, it can take measures to prevent losses before the fraudsters succeed.
(B) Risk assessment of accounts receivable
Before the loss occurs, we should evaluate the possibility of the loss, and after the loss occurs, we should evaluate the size of the loss. Of course, it is difficult to make a more accurate assessment, because many losses are difficult to estimate.
The evaluation work is inseparable from the collection of customer information. Generally speaking, we can read customers' financial reports, field visits or telephone contact, previous trading experience with customers, mass media or with the help of professional credit intermediaries and so on.
Obviously, high-risk customers have higher possibility and degree of loss, and are most prone to transaction disputes, poor solvency and poor reputation. Therefore, it is necessary to classify the risk level of customers. We are based on the credit status of our customers. What variables can be used to explain the credit status of customers? Alexander in the early twentieth century? Wall put forward Wall's scoring method. He selected seven financial ratios, such as current ratio, inventory turnover rate and accounts receivable turnover rate, and specified the ratio of each financial index in the model, which was 100. Then he determined the standard ratio and compared it, evaluated the scores of each index and summarized the total score. The higher the score, the lower the risk level of customers, thus dividing customers into high, medium and low risk levels. This is only a quantitative model, and there are other quantitative analysis models and qualitative analysis models.
In application, enterprises can choose specific models and make appropriate changes according to their own conditions.
In practice, it should be noted that the risk level of customers is not static, and the market is changing rapidly. Today's low-risk customers may become tomorrow's high-risk customers. Therefore, the risk level of customers should be re-evaluated regularly according to the latest situation of customers. In addition, in quantitative analysis, we often rely on customers' financial statements, so we should pay attention to the limitations of the statements themselves and identify possible whitewashes.
The loss of accounts receivable includes the capital cost of overdue accounts receivable, extra charge and bad debt loss. These direct losses are obvious. In addition, there are some indirect losses. For example, although selling on credit can generate more profits, it does not really increase the cash inflow of enterprises. On the contrary, enterprises have to pay all kinds of taxes and fees with limited working capital, which accelerates the cash outflow of enterprises, mainly as follows: 1. The sales income from accounts receivable has not been actually received in cash, and enterprises that calculate turnover tax according to sales must pay it in cash on time. Turnover taxes paid by enterprises, such as value-added tax, business tax, consumption tax, resource tax and urban construction tax, will inevitably increase with the increase of sales revenue. 2. Income tax expenditure. Accounts receivable generate profits, but they are not realized in cash. Income tax must be paid in cash on time. Once the accounts receivable cannot be recovered in time, the enterprise may have to borrow money from the bank because of poor cash flow, and the loan will bear interest expenses; If the enterprise engages in "triangular debt" and defaults on the payment of the supplier, it will not be able to get the cash discount of the purchase, or it will not be able to get a better purchase discount because of the decline of its reputation, thus increasing the product cost and being at a disadvantage in the price competition. If multiple losses occur at the same time, which exceeds the maximum bearing capacity of the enterprise for the loss of accounts receivable, the enterprise may fall into a serious financial crisis or even go bankrupt.
Risk control of accounts receivable
The so-called risk control refers to taking active control measures on the basis of risk identification and risk assessment to eliminate risk factors or reduce the danger of risk factors, and taking measures before losses occur to reduce the possibility of losses; After the loss occurs, minimize the loss.
Risk control measures can be divided into five types: avoiding risks, preventing risks, reducing losses, transferring risks and taking risks. Before the loss occurs, we can avoid, prevent or transfer risks to avoid the loss; When and after the loss occurs, we can take measures to reduce the loss or bear the loss, which is introduced in turn below.
1, avoiding risks
Risk aversion is also called risk aversion. After the risk assessment, we assess a customer as high risk, so we may not sell on credit, thus avoiding the risk. However, when applying this measure, we should pay attention to the following three points: (1) When the risk is high or the cost of managing the risk is extremely high, it is appropriate to avoid the risk; (2) Some risks are inevitable, for example, the global oil crisis has made the transportation industry difficult to operate, or the outbreak of SARS in China in 2003 has caused the tourism industry to be depressed; (3) If you don't want to take risks, you won't have a chance to sell. If you can't avoid risks, enterprises rarely accept cash transactions now. Ye Boli, president of Dunbar RMS, the world's largest accounts receivable management company? David said: "The risk of non-contact management is just a kind of danger. The risk of contact management is a kind of value and a redistribution of social value. The stronger the management level of managers, the higher the return. " Therefore, we can't give up eating because of choking. Although there are risks in accounts receivable, we can selectively accept the risks, so as to obtain the benefits that match the risks.
2. Guard against risks
Preventing risks is different from avoiding risks, and does not emphasize reducing risks to zero. Risk prevention is to reduce the possibility of loss. Through risk assessment, we can classify the risk level of a specific enterprise. If you can only trade with some low-risk customers, the comprehensive risk of enterprise accounts receivable will be greatly reduced, but how can you have this choice? You know, it's good for many companies to find customers now, and they dare to choose customers! I think the answer should be found in the marketing activities.
There are five concepts in marketing management philosophy: production view, product view, promotion view, marketing view and social marketing view [2]. In China, most enterprises are still stuck in the concept of products and marketing. If enterprises can adopt the concept of marketing, put market demand in the first place and produce products that meet consumers, they can gain strong competitiveness and win low-risk customers. In addition, if the product is recognized by the end consumer, the customer can sell it as soon as possible and recover the payment as soon as possible.
When identifying risks, we find that many risks actually come from the imperfection of internal control system related to sales and collection, so many risks can be reduced if they are improved. In 2002, the Ministry of Finance issued "Internal Accounting Control Standard-Sales and Collection (Trial)" and "Notice of the Ministry of Finance on Establishing and Perfecting Enterprise Accounts Receivable Management System" to guide and standardize the sales and collection behavior of enterprises. Enterprises should establish and improve relevant internal controls under the guidance of these laws and regulations.
(1) Strict credit sales approval system.
Strict examination and approval procedures can prevent salespeople from consciously selling on credit, seeking personal gain from it and causing losses to enterprises. Before signing the sales contract, the credit department or the credit post should carefully examine the other party's subject qualification, business scope, credit standing and performance ability in accordance with the relevant provisions of contract management. , and through the legal representative or financial manager of the enterprise to review the text of the contract, the enterprise legal adviser to review the legality and rigor of the contract, to ensure the effectiveness of the contract norms, to prevent trade disputes or commercial fraud.
(2) Regular inspection
The finance department regularly checks the payment records with the sales department, focusing on monitoring the accounts receivable that have expired without the signature of the other party, and taking timely measures to avoid creditor's rights disputes that are not protected by law.
Step 3 reduce losses
When an enterprise has good investment opportunities, but at this time, due to the failure to recover many accounts receivable in time and insufficient funds, it can use accounts receivable for financing, mainly in the following four ways:
(1) securitization of accounts receivable
In China, because the legal system of asset securitization is not perfect at present, it is not yet ripe to implement the securitization of accounts receivable. However, some foreign trade export enterprises have implemented cross-border securitization of export accounts receivable, which means that the accounts receivable formed by export sales are packaged and sold to overseas special purpose vehicles (SPV), and then the credit is upgraded, so as to issue asset-backed bonds in the international capital market and recover the accounts receivable in advance.
(2) Debit of accounts receivable
Accounts receivable loan is a financing method to obtain loans from banks with enterprise accounts receivable as collateral, which is divided into overall loans and special loans. Especially used in small and medium-sized enterprises, because the credit status and social status of small and medium-sized enterprises make it difficult not only to enter the direct financing market, but also to indirectly finance, which objectively restricts their advantages in the economy. The loan of accounts receivable can meet the capital needs of small and medium-sized enterprises and accelerate the turnover rate of accounts receivable.
(3) Entrust a professional institution to recover or take the form of arbitration or legal proceedings.
When the accounts receivable suffer heavy losses, the enterprise should negotiate with the debtor as soon as possible and restructure the debts when necessary. When a debt enterprise goes bankrupt, it should actively participate in the declaration and recovery of creditor's rights and never miss the best opportunity for recovery. For those who have the ability to pay but are maliciously in arrears, it still has no substantive effect after a period of time. They can entrust professional institutions to recover accounts receivable, and their agents can exercise the creditor's recovery work. Of course, if it is not enough, they have to apply for arbitration or legal proceedings to safeguard their legitimate rights and interests.
(4) The ownership reservation clause is stipulated in the contract.
According to article 134 of China's contract law, "the parties may stipulate in the sales contract that if the buyer fails to pay the price or other obligations, the ownership of the subject matter belongs to the seller." [3] In this way, the ownership of the goods can only be obtained if the customer pays off all the payment. Even if the customer goes bankrupt, the ownership of the goods still belongs to the enterprise and will not be regarded as bankrupt property, thus ensuring the security of accounts receivable to a great extent.
4. Transfer risks
When enterprises are unwilling to take risks for some accounts receivable, they should consider how to transfer risks. Financial institutions can take the initiative to take risks to participate in the disposal of accounts receivable and participate in the value distribution created by enterprises, as long as there are two ways:
(1) Sale of accounts receivable without recourse
It is to sell accounts receivable as commodities to financial institutions, thus transferring risks. In China, most commercial banks only accept accounts receivable financing with recourse, but this is a good start. I think that in the near future, there will be a number of companies specializing in accounts receivable management in China, and the business of commercial banks will not be limited to the accounts receivable financing business with recourse.
(2) Insure specific accounts receivable.
At present, China's insurance industry has not carried out this business, but I believe that there will be insurance where there are risks, and it is only a matter of time before the insurance industry provides insurance for accounts receivable.
(3) Obtaining a third-party guarantee
When a customer is rated as high-risk, enterprises generally only deal with it in cash. However, if a third party is willing to improve the guarantee and bear joint and several liability, it should also consider selling on credit. In case of loss, we can recover from the third party.