Legal Issues Of Domestic Factoring

Domestic factoring is an important way of account receivable financing to every enterprise, it gets a fast development under the aggressive push of local commercial banks in the last few years. Especially, with the implement of , People's Bank of China will begin to operate the register system of account receivable financing, that will further promote the growth of domestic factoring. As a comprehensive business, domestic factoring concerns complex relationships involving legal foundation and each party's rights and duties, so it is important to analyze and regulate it legally, at the same time, the thesis put forward measures to prevent risk. Except the introduction and the tag, the thesis includes three parts:Part One: Sketch of domestic factoring. Firstly, this part introduce the definition, classification, function of domestic factoring, and compare domestic factoring with international factoring. Secondly, this part analyze the legal basis of domestic factoring by comparing four theories.Part Two: The legal issues on the assignment of account receivable. Firstly, this part analyze the account of prohibiting assignment and the future receivables whether can be assigned, then discuss the effect of notice of assignment, finally analyze the internal effect, the exterior effect of assignment and the rules for settlement of conflicting rights.Part Three: Measure against the legal risk in domestic factoring. To apply theory to practice, this part raises the legal risks and the measures against them in the respect of seller's factor and buyer's factor.