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Export Textile Enterprises: How To Get Out Of The "Bad Debt Gate"

2008/11/6 9:43:00 27

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At present, the bad debts shown on the books of Zhejiang export enterprises are largely caused by their own poor management.

Wu boss, who produces leather furniture in Haining, is now worried and bitter.

Since 2004, he has been making OEM sofa for the US A company.

In June of 2007, when A company had not paid nearly $400 thousand, the general manager of A, Nancg, told him that A was bankrupt because of poor management and could not pay the money owed.

But Nancg can also do business with his newly established M company to make up for his trade losses with A.

Wu thought that since A company had gone bankrupt, it could only admit its bad luck. Fortunately, the former general manager of the A company was still doing business with himself and could still earn some money back.

In June of this year, Wu boss found that the M company's ability to pay fell and began to default on payment. Nancg asked him to deliver the goods first and get the bill of lading to the bank for repayment.

This time, Wu boss was anxious. He thought that he had lost nearly $400 thousand, and then it would be troublesome to default on the payment.

If you agree, fear old debts and new debts will add to the damage. If you do not agree, you will not only lose an old customer, but also how to deal with inventory and raw materials for Nancg.

This phenomenon is prevalent in Wenzhou, Yiwu, Shaoxing and Taizhou.

People who have been doing business for several years will almost always encounter delays in payment, bankruptcy and other factors that can not recover funds.

And surprisingly, almost all bosses showed unusually calm attitude towards this potential bad debt. "People in the mall have no millions of arrears. This is nothing, they are old customers, and the credit mode is normal."

Zhou's boss of Yiwu's small commodity market told reporters from Zhejiang businessmen.

US enterprises' Arrears rose sharply

According to the statistics of China Export and Credit Insurance Corp Zhejiang branch, the amount of reported loss cases in the first 5 months amounted to US $30 million 340 thousand, up 80% over the same period last year, and the reparations were 8 million 950 thousand US dollars, up 525.6% over the same period last year.

The number of claims increased by 525.6% over the same period last year.

The overseas bad debt rate of local enterprises has increased by about 268%.

And the birthplace of the subprime crisis, the United States, has become a serious disaster for overseas business accounts.

In the 1-5 month of this year, the company accepted 41 cases of damage cases involving the United States, with an amount of 11 million 280 thousand dollars, compared with only 19 or 4 million 410 thousand dollars in the same period last year.

"In the past, trade in the Middle East, Africa and Eastern Europe was relatively more prone to overseas arrears, but this year, the United States has seen a sharp rise in arrears."

The person in charge of a foreign trade export company introduces.

In February this year, a big luggage business in the United States went bankrupt, which affected about 5000000 accounts receivable of 5 enterprises in Zhejiang.

According to incomplete statistics, so far, nearly 1000 enterprises in Zhejiang have suffered more than 50 million US dollars in bad debts.

By the end of August 2008, the number of bankrupt enterprises in the United States has reached 97, an increase of 28.9% over the same period last year.

In the bankruptcy of textile, furniture and hardware machinery, most of the creditors are Zhejiang enterprises and suppliers, and these large debts will disappear with the bankruptcy and bankruptcy of American enterprises.

Business accounts are urgent.

The "debt" business is increasing, and the debt crisis of Zhejiang enterprises is escalating.

Since the beginning of this year, as a professional consulting agency for domestic enterprises to recover business accounts, the company has undertaken many cases of Zhejiang foreign trade enterprises demanding to chase accounts, involving more than 5 million dollars.

Xiang Miaogen, general manager of the company, said that the real situation of Chinese enterprises is to a certain extent the loss caused by the subprime mortgage crisis.

Xiang Miaogen said that Zhejiang's small and medium-sized private enterprises in the foreign trade business, eager to seek a single, eager for quick success and instant benefit, to accommodate foreign buyers, to make orders with arrears, do not carry out credit investigation and real-time monitoring of buyers, believe in buyers' information and so on.

"Some enterprises even do not have orders and contracts for foreign trade. They produce large quantities of products to foreign customers by e-mail."

Moreover, what many people do not know is that most of the small and medium-sized export enterprises in Zhejiang are deceived by foreign "professional debtors".