| As a new method of international settlement, International factoring has been getting more and more concerned owing to its character of mixing the settlement with the financing. Due to the development of global economy, the buyers are being in charge of the market. Therefore, the buyers would like to choose the settlement of Open Account or Documents against Payment instead of Letter of Credit, which is beneficial to them. To promote their merchandize, the sellers have to accept the request of the buyers. As a result, the sellers are exposing to the risk. How to deal with the conflict is essential for the buyers and sellers. Under the circumstances of international market competition, International factoring has been developing rapidly, and is helpful for companies' survival and expansion.At present, the settlement of Letter of Credit has been being replaced partly by the International factoring in developed European countries. It is estimated that Letter of Credit employed has been reduced to 10% -- 15% in European countries. In contrast, the International factoring is in the period of induction in China. The commercial banks, as the factors, and the enterprises, as the actors, have no experiences in the operation of the International factoring business in China.Joining WTO brings the opportunities and challenges for the domestic companies and commercial banks. It is the only way for the domestic companies to choose the settlement of International factoring to survive in the competitions of international trade. To some extents, International factoring is one of the key factors for our commercial banks to survive in the competition with the foreign-owned banks.Therefore, the thesis studies the contents of the International factoring, analyzing its advantages in international trade. Taking Bank of communications for example, there comes some suggestions about the development of International factoring in Bank. Then pointing out the present situation and problems in China. At last, put forward the strategic plan and specific schemes for International factoring development in China. |
