Study On The Risk And The Legal Countermeasure Research Concerning The Factors Face In The International Factoring Business

As a new forward-looking synthetic service of finance,the international factoring plays a significant role in the development of the international trade.As an important practitioner and accumulator of the international factoring,the factors face the seriously legal risk. Knowing how to prevent the risk is very important to the arising service,the thesis tries to probe into the methods of prevention of the legal risk of the factors.The paper consists of four parts.Part one,it gives a summary of the international factoring.Firstly,the author makes a clear definition of the international factoring.The international factoring has been definitude clearly as a new service of finance which performs one of the following functions at least: finance for the supplier,maintenance of accounts relating to the receivables,collection of receivables and protection against default in payment by debtors.The accounts receivable comes from the contracts of sales of goods made between the supplier and the debtor whose places of business are in different States.Secondly,the author takes a systemic analysis of the legal relationships between the factor and the other parties of different factoring Contracts. International factoring is a creditor's right and on the basis of the features of the financial services;it is directly reflected in the factor and other parties to the legal relationship. Specifically,there are four groups of the relationship among the factors and the other parties, all the above relationships could be divided respectively as followings,the legal relationship between the export factor and the supplier,the legal relationship between the export factor and the import factor,the legal relationship between the export factor and the import factor, the legal relationship between the supplier and the import factor.Part two makes a legal analysis of the legal risk of the export factor and its prevention. The legal risks mainly includes the credit risks,the risks from the contract,the risks from validity and negotiability of the account receivable creditor's rights,the risks from the transferring of the receivables and the risks from the import factor.Some practicable measures of preventing above risks are provided.Part three analysis the legal risks to the import factor and provide practicable measures to prevent those risks.The import factor usually faces the risks which include credit risks,the risks from the transferring of the account receivable,the risks from the application of law and the settlement of the disputes,the indirect payment from the debtor,and the fake disputes put forward by the debtor.Some practicable measures to prevent those risks are provided.Part four analysis the special legal risks to the factors in China and provides practicable measures to prevent those risks.The factors in China usually faces the risks which includes the lack of the legal framework and the legal environment for international factoring to survive and develop,a social credit system as well as information disclosure and sharing mechanism,a supervisory mechanism which adapts the development of international factoring,and a necessary legal system for international factoring.Some practicable measures to prevent those risks are listed as follows:(1)on the base of the Law of contract,formulae a special law on factoring——Law of factoring;(2)Establish a essential information disclosure and a information sharing legal system as well as perfect social credit mechanism;(3)Formulate a supervisory mechanism on regulating the international factoring service——Act of administration on factoring corporation;(4)Consummate necessary laws and regulations and improve the domestic and international legal environment for international factoring.