(Summary description)In order to standardize the accounting of enterprises' financing business to banks and other financial institutions by using the creditor's rights receivable, the Ministry of finance has issued Interim Provisions on business accounting treatment. In this brief introduction, financial personnel need to learn more and contact with some related financing methods.
In order to standardize the accounting of enterprises' financing business to banks and other financial institutions by using the creditor's rights receivable, the Ministry of finance has issued Interim Provisions on business accounting treatment. In this brief introduction, financial personnel need to learn more and contact with some related financing methods.
The essence of the pledge loan of accounts receivable is a kind of commercial credit behavior. When an enterprise obtains the credit funds from banks and other financial institutions, it needs to bear the corresponding debts and the credit risks corresponding to the receivables, which the debtor is unable to pay when due:
1、 Factoring financing refers to the accounts receivable generated by the seller's application for purchasing goods on credit from the factoring bank and the buyer. The Seller shall be jointly and severally liable for the payment due to the buyer, and shall also be liable for the repurchase of the receivables at the request of the factoring bank. In short, it refers to the behavior that the seller transfers the receivables legally owned to the bank to obtain financing.
2、 Export invoice financing. The period of payment for customers with good foreign credit of export enterprises is up to 120 days. Enterprises can choose this financing method when they are short of funds. The loan bank will lend a certain proportion of the receivables according to the period of each receivable. When the enterprise receives the loan, the bank will charge a certain fee according to the agreement. When the enterprise's receivables are due, the bank will automatically deduct the pledged principal and interest.
For the economic consequences of receivables financing, from the perspective of financial statements, it is beneficial to enhance the asset turnover rate and asset operation ability of enterprises and accelerate capital turnover.
At present, there are many ways for our enterprise to borrow money. While expanding the total amount of capital, we also strictly control the financing cost. Therefore, we need to select financial products and financial institutions to closely connect with each other. There are also many materials that need to be prepared and compiled by each department. Thanks for the cooperation of each department. Let's work together for the brilliant development of our enterprise!
Finance Department of Longxing company