UK Apparel Retailing Industry Risks Increased

Over the past few days, fan boss of a foreign trade clothing company in Yinzhou District was very disturbed. A few months ago, a group of clothing valued at $200 thousand was sent to the United Kingdom.

Fan boss is very worried that if he continues like this, his goods may become bad debts.

In fact, fan boss's worry is not unnecessary.

In recent years, the British clothing retailing industry has been affected by the consumer's tight spending. The overall business situation is poor, and some enterprises have greater debt pressure.

In particular, some enterprises who are in the process of taking over the assets to deal with the existing assets as soon as possible, and generally use the debt free way to sell assets, cause greater losses to creditors.

According to the relevant British reports, the number of bankrupt enterprises in the UK increased by 19% in 2011 to 31.

The reporter learned from China's Ningbo branch of the credit insurance company that at present, clothing companies in our city have reported losses.

Due to the timely release of risk warning, enterprises have reduced their exposure in a timely manner, and most of the loans have been recovered.

However, there are still some buyers who have not received the money safely, and the total amount is about 2 million 778 thousand US dollars.

In view of the increased risk of the British apparel retailing industry, the China credit insurance Ningbo branch reminds the relevant export enterprises that they should pay close attention to the operation of the buyers in the British apparel retailing industry.

Particular attention should be paid to background buyers of funds, focusing on enterprises whose funds have been involved in buyer's business for more than four years, but their business performance has not improved.

At the same time, it is recommended to do well in risk prevention work before placing orders and before shipment, improve the risk control measures in the contract, and strengthen the tracking of receipts and payments, especially to increase the collection of accounts receivable overdue.