Dissertation > Economic > Economic planning and management > Enterprise economy > Corporate Financial Management

Risk and control of bank accounts receivable financing pledge

Author HuangHaiTao
Tutor WeiJingZuo
School China University of Political Science
Course Economic Law
Keywords accounts receivable pledge of accounts receivable unqualified accounts receivable line of credit
CLC D922.28;F275
Type Master's thesis
Year 2010
Downloads 540
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The Property Law of The People’s Republic of China (hereinafter refereed to as Property Law) promulgated at 2007 set the rules of pledge of accounts receivable which broke the former limits of the subject of pledge of rights in Secured Transaction Law, great promoted the rights guarantee system forward. As domestic banks are lack of experience on risk control in the pledge of accounts receivable, in addition, the "Property Law" didn’t clearly settle a lot of law issues in the pledge of accounts receivable, which also restrict the function of pledge of accounts receivable. The paper analysed the commercial risk and legal risk in the practice of banks to develop accounts receivable financing, and gives suggestion on controlling these risks.The first chapter is an overview of pledge of accounts receivable. Section I first analyzed the meaning of accounts receivable, due to "property law" did not defined the accounts receivable. Combined the domestic law, the academic point of view, the author proposed the meaning of the definition of accounts receivable in law:It’s a kind of right that people enjoy the present and the future of money transfer payment request to the right, but not including notes or other securities generated by the payment claim. Then analyzes the law and the accounting differences on the definition of accounts receivable. Second section is by comparing the accounts receivable pledge and equity, property rights in intellectual property pledge in the difference, besides, compared the pledge of accounts receivable and notes, bonds, certificates of deposit pledge, in order to explain the fetures of accounts receivable pledge. SectionⅢcompared the accounts receivable pledge and assignment of accounts receivables.The second chapter is the bank accounts receivable financing operation overview. Firstly, from the perspective of the commercial banks, the paper analysed the institutional advantages of pledge accounts receivable financing. Then compare the the difference between factoring and accounts receibale financing, accounts receivable financing and factoring are independent system, and have their respective advantages. Then analyzes the different categories of accounts receivable financing in practice, and described the particularity risks of different categories of accounts receivable pledge financing. Finally, The paper introduced the general process of accounts receivable pledge financing, highlighting the general difference between the pledge of accounts receivable financing and secured loan credit method.The third chapter is the risk analysis of the bank accounts receivable financing operation. The first part analysed the commercial risk of accounts receivable financing, which is the risk of the debtor’s lack of performance ability. Debtor’s ability to lack of performance mainly in two aspects:one is unqualified accounts receivable were pledged; on the other hand, the value for the pledge of accounts receivable reduction occurred in the duration of the loan. The second part analysed the legal risks of the accounts receibale financing, which mainly from the aspects of fraud, breach of contract, to achieve the right, registration and other aspects of the financing of possible legal risk. ChapterⅢof the risk analysis is to pave the way to control risks on measures in the fourth major chapter.Chapter Four proposed the methods to control the risk against accounts receivable financing operation. According to two types of business risks and legal risks, the risk control methods were explained. The control of the business risks mainly through management control within the bank’s credit, which is divided into pre-credit loans review and supervision of after-credit loan. Control of legal risk, mainly through improved terms of the contract, the establishment of third-party guarantees or insurance to control.

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