Risk Research Report on Account Receivable in Logistics Industry

Content

Preface

Chapter One: General Introduction on Risk of Account Receivable in Logistics Industry

Part One: Definition of Account Receivable

Part Two: Status Quo of Risk of Account Receivable in Logistics Industry and its Harms

I.  Status Quo of Risk of Account Receivable in Logistics Industry

According to the characteristics and convention of logistics industry, the logistics company usually provides service before the payment is settled, and the billing period is relatively longer than other industries. So the logistics supplier, on the one hand, has to pay the actual carrier in time, and on the other hand, they face the deferred payment from the clients. Account receivable risks accordingly arise

II.  Harm of Risk of Account Receivable

»   Large Amount of Account Receivable Increases the Difficulty of

     Capital Circulation

»   Account Receivable Exaggerates Business Achievements and Traps

     Enterprise in Potential Financial Deficit

»   Account Receivable Increases the Loss of Cash Outflow

»   Account Receivable Increases the Opportunity Cost of Capital

Chapter Two: Causes for Risk of Account Receivable in Logistics

                      Industry

Part One: Incomplete Credit Research System in China

Part Two: Non-circulating Business Credit Information

Part Three: Market Competition

Part Four: Unreasonable Research in Logistics Enterprise

Chapter Three: Risk Research Project on Account Receivable in

                         Logistics Industry

Part One: Establish Sound Credit Policies

Credit policy is company‘s regulation on the Research of account receivable, including the credit standard, credit terms and credit lines.

I.  Set Correct Credit Standard

II.  Adopt Correct Credit Terms

III. Establish Proper Credit Line

Part Two: Enhance Internal Risk Control in Logistics Enterprise

I.  Overall Due Diligence Investigation on Debtor

II.  Formulate Proper Policies for Deferred Payment

     Work out detailed deferred payment limit for enterprises with different

     credit standing

III. Establish Strict Examination System of Deferred Payment Sales

    Establish examination procedure of different levels, the larger amount

    of the deferred payment, the stricter examination procedure

IV. Strengthen the Respective Client Research & Total Amount

     Research Regular Examination on Debtors

V. Countermeasures on Indefinite Deferring Payment

»   Change the account receivable to notes receivable

»   Pledging and transfer of account receivable

 Credit insurance

Chapter Four: Enhancement and Perfection of Credit System in

                        China

Part One: Strengthen Information Exchange in Logistics Industry

Part Two: Improve Enterprise Credit System in China

Electronic Edition: USD 1,400