The Discussion On Risk Of Fraud In International Factoring And Counter-measures To It

As a emerging and burgeoning term of payment as well as comprehensive financial service, international factoring, which met the requirement by the trend nowadays to gradually form and develop into buyers' market in international trade, resulting in the relatively thorough solution to the capital overstock and credit risk from importer facing the exporter in sale on account, has been increasingly favored and extensively employed by most merchants all over the world in recent years. However, along with the rapid development and pervasion of international factoring, fraud, this deep-rooted phenomenon in the international trade, also permeated, bringing about another type related to international factoring—fraud in international factoring. The advent and spread of this new fraud risk caused severe interruption and damage to the stability of the order in international trade and economic development of each country. Furthermore, it enlarged the commercial cost to merchants who observed the principle of good faith when doing their business. With constantly attaching more importance to the improvement and application of international factoring, which has shown the considerable vantage, it is unavoidable for china to encounter the challenge and threat posed by this new fraud risk in international trade. In an effort to strengthen the safety of international trade and safeguard the sound development of china's economy as well as the vital interest for merchants, it will be of great reality significance for us to systematically study the risk of fraud in international factoring and corresponding counter-measures. Therefore, author will exactly make his exposition from the aforementioned aspect in this paper.