Research On Forfaiting--From A Legal Perspective

Forfaiting is a new species of international trade finance, which is an inventive means used to facilitate exports with least possible risk. The most important feature of forfaiting is that it allows the exporters get cash back at a discount without recourse. It develops rapidly in recent decades. Comparatively maturely developed in Western countries, forfaiting is unfamiliar to clients in mainland of China. It is of great significance to conduct a basic research on the thesis. From the legal perspective this dissertation tries to make some references to practice and legislation for forfaiting.The dissertation has six chapters. Part One of this paper identifies the typical features of forfaiting. Part Two illustrates the origin for forfaiting laws. The next two chapters explore the legal relations between forfaiting parties and highlight the fundamental elements of forfaiting disputes. Finally the last parts convey the legal risks associated with forfaiting transaction and its precautionary measurements, and give suggestions on how to build perfect Chinese forfaiting system.Forfaiting is an increasingly common method of international finance. The application of forfaiting can help Chinese banks more internationalized and expand the opportunity of export.