The successful management experience of FAW Dachai shows that only by introducing advanced management mechanism and implementing a scientific and comprehensive credit management system can large enterprises fundamentally solve the problems of out-of-control credit marketing risk and arrears of accounts receivable.
The change of management mechanism brought by the whole process credit management model
_ _ _ _ FAW Dachai's accounts receivable management has gone through a very tortuous road. As early as 1997, in order to reduce a large number of overdue accounts receivable, the company, like many large enterprises, set up a "debt clearing office" and organized a large number of manpower to collect debts everywhere. However, this kind of "fire fighting after the event" management has not played an ideal role, but is "clearing the past and returning the future".
_ _ _ _ Later, the management of the company decided to strictly control the accounts receivable, established the Accounts Receivable Control Room, changed the risk management from "rescue" to "control" and implemented the "risk-free management strategy". However, although this strategy and management greatly reduce the accounts receivable, it also greatly reduces the company's sales and reduces the competitiveness of enterprises in the same industry.
How can we organically combine risk control with marketing?
_ _ _ _ 2006 54 38+0, the company adopted the whole process credit management mode, and the founder of this mode, Professor Xu Xie, personally designed a complete credit management scheme for the company. With the assistance of Oriental Factoring Beijing Boshengtong Management Consulting Co., Ltd., a scientific credit risk management system was quickly established and remarkable management results were achieved.
_ _ _ _ First of all, the whole process credit management model requires the implementation of "process management" for the risk business of enterprises. On the basis of carefully analyzing the characteristics of the company's "sales return" business process, management consulting experts put forward a set of "pre-sale, in-sale and after-sale" credit risk management scheme, which moved the focus of accounts receivable management forward, not only strengthened the control of credit risk, but also paid attention to the credit analysis of customers beforehand.
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Secondly, according to the principle of "internal control", this model establishes an independent credit management function department within the enterprise to carry out professional risk control on key business links. For example, in the original sales management model, the sales department decided the duration and quantity of credit sales by itself, while the new management model must implement an independent "credit system", and the credit management department will review the credit limit of each customer.
The introduction of this scientific credit management mechanism has enabled FAW Dachai to make up for the defects in the traditional management system and get out of the misunderstanding of accounts receivable management.
Implement a standardized credit management business system.
_ _ _ _ With the help of the project consulting group, FAW Dachai reorganized the basic business management functions of the enterprise, such as the use of credit resources, sales risk control and account recovery, and established a perfect internal credit management system, which greatly improved the performance of the enterprise's "sales return business process".
____ 1, implement a standardized customer credit management system.
_ _ _ _ customers are not only the biggest source of wealth for enterprises, but also the biggest source of risks. To this end, the company first established a professional customer credit management business system, including the collection method of customer credit information, the establishment and management of customer credit files, the establishment of customer credit risk analysis model and the dynamic monitoring measures for customer credit risk. These professional management methods have fundamentally changed the blindness and subjectivity in customer management in the past.
In the past, the biggest headache for enterprises in sales decision-making was how to judge the possible credit risk of customers. When a high order comes, sales people often forget the risk with joy, and management decision makers may make subjective and blind judgments due to the lack of professional credit analysis methods, and finally make decision mistakes.
_ _ _ _ Through the introduction of scientific credit analysis methods, the management of the company realizes that the credit risk of customers can be predicted and measured, and the key lies in mastering a set of scientific and professional evaluation methods. The core problem of customer credit management is to apply these scientific customer credit analysis methods to actual sales management and establish a standardized customer credit risk prediction management system for enterprises.
2. Strengthen the credit risk management of marketing system.
_ _ _ _ marketing system is one of the most complicated and risky fields in enterprise management. With the formulation and implementation of credit policy and the evaluation of credit limit as the core, the company implements standardized management of credit sales business, fundamentally improves the efficiency of enterprise sales and payment collection business processes, and controls the generation of credit risks from the source.
The basic business process of credit sales management of FAW Dachai;
Credit sales plan formulation
Credit policy implementation
Customer selection of credit sale
Credit limit evaluation
Payment recovery monitoring
The successful experience of FAW Dachai proves that it is very important to standardize the management of credit sales business, formulate a set of reasonable credit sales policies and implement them effectively. Credit policy refers to a series of preferential standards and conditions adopted by enterprises to encourage and guide credit sales (credit sales), including credit term, cash discount rate and credit standards. If the enterprise does not have a strict and reasonable credit policy, it will lead to the situation that both internal salesmen and customers may extend the payment term at will and give too loose credit standards.
3. Establish a scientific account monitoring management system.
_ _ _ _ Accounts receivable are important assets of enterprises. The security and recovery efficiency of these assets largely determine the performance and credit level of enterprises. However, if the enterprise management mechanism is not designed properly, it will bring too high management cost and risk loss to the enterprise.
_ _ _ _ To this end, FAW Dachai has established a budget and reporting system for accounts receivable in the financial management system. At the same time, a business process management system of accounts receivable recovery with aging management as the core is established, and the whole process of accounts receivable recovery is monitored by full-time personnel, shifting the focus of financial management to the payment due date. In the collection of accounts receivable, sales staff, financial personnel and credit management personnel work together, which greatly improves the efficiency of collection.
In the past, enterprises mainly used the index of "return on capital" to assess accounts receivable management, that is, the ratio of recovered payment to sales. However, this indicator only reflects the amount of recovered payment, but does not reflect the quality of accounts receivable management. This gives the business people the impression that as long as they finally receive the payment, regardless of the time of recovery.
Through the professional analysis of accounts receivable management, the company found that the efficiency (time) index of accounts receivable, the number of days of sales realization (DSO) or the ratio of overdue accounts receivable really played a decisive role in the final profit and cash flow of the enterprise. Therefore, changing the assessment index of accounts receivable management plays a vital role in improving the performance of accounts receivable management.
Overseas accounts receivable of mainland enterprises in China100 billion USD.
Who is in arrears?
Accounting net, China (www.e52 1.com) 2005-04-06.
Sun of Dunbar Information Consulting Company said that the overseas accounts receivable of mainland enterprises in China amounted to US$ 654.38 billion, mainly because China enterprises lacked clear credit management standards and management tools.
A carpet company in Beijing owed US$ 4 million to Shui Piao, and the salesman in charge of this business also disappeared from Beijing. The American customer cancelled and both of them disappeared.
Han Jiaping, director of the Credit Management Department of the Research Institute of the Ministry of Commerce, said that after a period of time, their investigation suddenly found that the original salesman had been in the United States and was in charge of a new company. "The experience of this carpet enterprise is very representative."
In the recent action of the Ministry of Commerce to assist China enterprises to recover overseas debts, Han led more than 65,438,000 people to fight in the front line.
Han revealed that his unit has provided account management services to more than 1,000 enterprises at home and abroad, and recovered a total of 654.38+0.4 billion yuan.
And 6543.8 yuan+400 million yuan is just the tip of the iceberg of huge overseas arrears.
Hundreds of billions of dollars in overseas arrears.
How much overseas debt do China enterprises owe? The data given by Han Jiaping is about $654.38+000 billion, which will increase by about $654.38+005 billion every year. However, Han stressed that the foreign debt of 654.38+000 billion yuan is not the "black hole" of foreign trade mentioned by the media before. "This statement is not rigorous."
Dr. Mei Xinyu, from the Foreign Trade Department of the Research Institute of the Ministry of Commerce, who has been studying international hot money for a long time, said: "Since the government departments have not conducted a comprehensive investigation on this issue, whether the above data are in line with reality needs further discussion."
Han also admitted that it is quite difficult to collect statistical data, which "should be based on actual surveys, announcements of listed companies, customs and other relevant data".
Han said, "In developed countries, the reasonable term of enterprise accounts receivable is generally three to six months. If it exceeds this period, it will be treated as bad debts. In domestic enterprises, except for listed companies, it is very common that accounts receivable have not been recovered for more than two years, and this information is generally not released. "
"If China implements the financial system of enterprises in developed countries, the term of accounts receivable will be shortened to three to six months, and it is believed that the overseas debt exported by China will increase a lot." Han Jiaping said.
Mei Xinyu believes that relevant data can prove that the overseas accounts receivable of China enterprises are considerable, and many of them have formed huge bad debts.
For example, the total amount of non-performing assets received by Orient Asset Management Company when it was established on 19991June 15 was as high as 267.4 billion yuan, and this was only the non-performing loans released by Bank of China before 1996, and the "two deadbeats" formed before1999.
Relevant persons of Orient Asset Management Company also said in an interview with Xinhua News Agency that this situation does exist, but the company "has not made overall statistics" on how many of its non-performing assets are overseas accounts receivable.
Even in developed countries, there are a large number of overdue accounts receivable. According to the statistics of the Federal Reserve, as of August 2004, there were $880 billion in commercial overdue accounts receivable in the United States.
But the difference is that the average payback period of accounts receivable of American enterprises is 37 days, while that of China enterprises is 90- 120 days, which is 3-4 times that of European and American enterprises. The success rate of debt collection companies in the United States is at least over 60%, while that in China is only 18.9%. At present, the bad debt rate of Chinese export enterprises is above 5%, while that of enterprises in developed countries is only 0.25% to 0.5%, and the international average level is only about 1%.
Deng Bai International Information Consulting (Shanghai) Co., Ltd. (hereinafter referred to as "Deng Bai Information Consulting") conducted an investigation on the accounts receivable and credit management of enterprises in China last year. Liang Bo, manager of its business consulting department, said that although the accounts receivable situation of enterprises in China has improved, there is still a big gap between the average DSO of various industries and countries and regions in the Asia-Pacific region, such as the United States and Europe. In terms of delay ratio, China is the only one that exceeds 50.
Who is in arrears?
A thought-provoking data provided by Han Jiaping to reporters is that at least half of the cases he handled came from China companies.
"These China people have a clear understanding of China's national conditions, and they have a set of professional coping methods," Han said.
One of the national conditions is that many state-owned enterprises become bad debts when managers change, because successors are afraid that overdue accounts will not be collected and their performance will be affected. For the overdue accounts generated by previous leaders, I would rather keep them as accounts receivable than take the initiative to recover them.
According to the survey data of American Commercial Law Union, when the overdue time is one month, the success rate of debt collection is 93.8%, when it is overdue for half a year, the success rate drops to 57.8%, and when it is overdue for about two years, the success rate can only reach 13.5%.
Secondly, according to South Korea's analysis, it is very common for salesmen to monopolize customer resources in China's export enterprises. From the initial "pull business" to the final sales reminder, the salesman is responsible. If the account is not received, the salesperson will be responsible for compensation.
"This practice has great disadvantages. On the one hand, let the salesman bear too many risks; On the other hand, the export business process is arranged by a salesman, so it is difficult for enterprises to effectively supervise it, and it is easy for salesmen to embezzle enterprise assets. "
This is what happened to a carpet export enterprise in Beijing mentioned at the beginning of this article. Han told reporters that this overseas debt could not be recovered even after the Ministry of Commerce took over.
China enterprises' excessive accommodation to overseas enterprises is also one of the hidden dangers.
Mei Xinyu pointed out that since most of China's export products are general manufactured goods, in order to win export orders, China's export enterprises have to rely mainly on price strategies, or excessively accommodate customers in terms of settlement methods, payment terms and payment recovery.
In addition to China people, Deng Bai's information consulting survey found that a considerable part of the bad debts of domestic export enterprises occurred in "super-small companies" with three to five people abroad. These "super small companies" often rent business centers and hire secretaries in office buildings, which is "extremely risky".
In terms of the regional distribution of overseas arrears risk, Han Jiaping and Deng Bai both believe that countries and regions with underdeveloped markets, opaque information and imperfect market systems have higher risks.
In actual business, the United States, South Korea, Europe, Japan and other regions and countries owe a high proportion of money to China enterprises. "This is mainly due to the large and frequent trade between China and these regions," Han said.
Han pointed out that due to the fear of bad debt risk and account default, the proportion of China enterprises selling on credit is only about 20%, while that of European and American enterprises is as high as over 90%. Due to the lack of credit sales ability, many business opportunities have been lost, and the competitiveness and transaction scale of enterprises have been seriously affected. According to this calculation, the sales scale of European and American enterprises of the same scale is 4.5 times that of China enterprises.
Why do mainland enterprises frequently default?
Sun, an information consulting company, pointed out to this reporter that there are both internal and external reasons for this situation, but the main reason is that China enterprises lack clear credit management standards and management methods.
According to the survey, the proportion of bad debts caused by sales problems (that is, product quality or default) and collection problems (that is, the buyer is unable to repay or go bankrupt) is about 2.5%.
Statistics show that only 1 1% of China's import and export enterprises have established a credit supervision system, of which 93% are foreign-funded enterprises.
Due to the lack of credit means, there are few customer credit surveys, or the surveys are untrue, and hidden dangers exist at any time.
Han Jiaping provided such a case: when doing business with a foreign group company, many companies in Zhejiang and Fujian were owed a lot of money by this company. According to the company's business card, it has branches and offices in many countries. Before doing business, a company in Fujian sent two comrades to study caution abroad, and personally visited the boss's house, and saw that his house was magnificent and very luxurious. Based on this, I think the company is very powerful, so I adopted account publishing.
Han Jiaping suggested that "the above-mentioned foreign trade companies spend a lot of time and money to send people abroad to understand the situation, but the effect is not as good as entrusting professional companies to conduct credit investigation."
In the standard credit report, the nature and background of the company under investigation can be determined by investigating the place of registration, legal nature and company history; Through financial reports, payment records and mortgage records, the scale and solvency of the company under investigation can be determined; The credit status of the company under investigation can be determined by litigation records and payment records; Finally, through the credit evaluation, we can get the comprehensive evaluation of professional institutions.
Moreover, Dr. Mei Xinyu believes that corruption has also caused bad debts overseas.
He analyzed that using overseas accounts receivable to embezzle enterprise assets is a serious problem faced by many enterprises, and the specific methods are constantly being "improved"
In recent years, malicious people tend to set up shell companies overseas by themselves, their families or their subordinates as a tool to implement the above-mentioned asset embezzlement operations, so as to reduce the exposure risk and take the "proceeds" of corruption as their own.
On the other hand, in the process of state-owned enterprise reform, some managers, through the above operations, first bring down good enterprises that have lost money and closed down, and then buy the original enterprises with a small amount of assets transferred overseas.
Besides the enterprise's own reasons, Dr. Mei Xinyu also pointed out that China's long-term implementation of strict overseas investment management policies has hindered the normal transnational business needs of some enterprises, and enterprises can evade control by manipulating overseas accounts receivable.
When enterprises decide to invest abroad, they can use the name of overseas accounts receivable to keep export income abroad, thus avoiding the strict and lengthy domestic examination and approval procedures. In order to meet the capital needs of overseas subsidiaries, domestic enterprises may also provide funds to overseas subsidiaries in the name of export accounts receivable.
The Ministry of Commerce promotes the "3+ 1" governance model.
In order to cope with the above situation, at present, the Ministry of Commerce is pushing the "3+ 1" credit management model.
Han Jiaping explained that "3" refers to the establishment of three inseparable credit management mechanisms within the enterprise: the credit investigation and evaluation mechanism in the early credit management stage, the creditor's rights protection mechanism in the middle credit management stage, and the accounts receivable management and collection mechanism in the later credit management stage.
Among them, the credit investigation and evaluation mechanism avoids credit risk from the perspective of customer screening, evaluation and control in the early stage of transaction; The creditor's rights protection mechanism transfers and avoids credit risks in the middle of transactions; The accounts receivable management and recovery mechanism closely monitors the accounts receivable recovery in the later period of the transaction to minimize the credit risk.
"1" refers to the establishment of an independent credit management organization (personnel) within the enterprise to comprehensively manage all aspects of enterprise credit sales.
"A survey of 24 China enterprises that have initially established a' 3+1'scientific credit management model shows that in the first year after management, the proportion of enterprise management expenses, financial expenses and sales expenses in sales revenue decreased from 14% to 9%; The average amount of credit sales increased by13%; The average bad debt rate decreased by 3.6 percentage points; The average sales recovery period (DSO) is shortened by 37 days; Market share has increased to varying degrees; The cash flow of the enterprise is appropriate; The comprehensive economic benefit index increased by 2 1% on average. At the same time, customer credit data is complete, customer service quality is improved, corporate financial indicators are higher than the industry average, and the comprehensive competitiveness of enterprises is significantly improved, "Han Jiaping said.
Source: 265438+20th Century Business Herald _ _
Mei Xinyu: How did the huge overseas accounts receivable come into being?
With Changhong's $4.2 billion accounts receivable incident surfaced, the overseas accounts receivable of China's export enterprises have aroused widespread concern. From the recently held "Seminar on Commercial Account Management and Credit Construction in International Trade", it is learned that while China is rapidly stepping into the ranks of world trade powers, at least $654.38+000 billion of overseas accounts receivable are overdue and will continue to increase. (International Finance News, March 29)
Whether the above data conform to the reality has not been confirmed by the government investigation report, but according to the available data, it can be concluded that the scale of bad debts of overseas accounts receivable of China enterprises is serious and the problem has a long history. Except for a small amount of bad debts written off by export enterprises, most of them are converted into non-performing loans from Orient Asset Management Corporation and Bank of China.
Undoubtedly, China enterprises have huge overseas accounts receivable, the primary reason is that China enterprises are indifferent to credit risk management and lack credit risk management means. Relevant statistics show that only 1 1% of foreign trade enterprises in China have established a credit supervision system, of which 93% are foreign-funded enterprises. Many domestic foreign trade enterprises have not established accounts receivable management policies at all. Either the accounts receivable management policy has become a dead letter and has not been implemented. Some enterprises are worried that the recovery of accounts will affect customer relations; Some high-level enterprises have changed, and their successors are afraid that they will not be able to collect overdue accounts and become
Bad debts affect their book "performance", so they prefer to keep the overdue accounts generated by their former leaders as accounts receivable instead of actively collecting them ... These have led to the high overseas accounts receivable and bad debt rate of China enterprises, but illegal and "illegal" behaviors are also important reasons for overseas accounts receivable.
The purpose of illegal overseas accounts receivable is to embezzle enterprise assets. In the early years, the common method was that the business personnel of export enterprises took advantage of the convenience of being responsible for the whole process from pulling business to recording payment, and colluded with overseas businessmen, who continued to export goods to overseas businessmen but did not ask for payment on their own initiative. These overseas businessmen offer kickbacks to business people, or further provide them with overseas employment opportunities and overseas study arrangements for their children. In recent years, people with malice prefer to set up shell companies overseas by themselves, their families or their subordinates.
In recent years, the rise of state-owned enterprise reform has further reduced the risk of the above operations, because if the former enterprise managers or business personnel embezzle assets through the above means, they will inevitably leave a lot of bad debts, which will be exposed after their successors take office. However, in the reform of some state-owned enterprises, if the above operations are carried out, the good enterprises will be thrown away and destroyed first, and then a small part of the assets transferred overseas will be used to buy the original enterprises, which can cover up the traces of crime.
In addition, there are many overseas accounts receivable on the books, which are actually tools for enterprises to evade state foreign exchange control in order to meet the legitimate needs of transnational operations. It can be called "violation of regulations is not illegal". At present, China's capital account control is still quite strict, and the approval procedures for overseas investment of enterprises are lengthy and complicated. Domestic parent companies cannot provide guarantees for overseas subsidiaries, and the profits from overseas investment must be repatriated within the prescribed time limit. Although these regulations are generally necessary, they often hinder the normal transnational business needs of some enterprises.