Study On Factoring's Cession

Absract:Factoring is an integrated financial service including a set of functions such as short-term financial intermediation, credit risk guarantees, sales account management and accounts receivable collection.In recent years, with the international letter of credit being challenged,factoring became the new darling of the international trading community.In accordance with the data provided by the international federation of factoring ,international factoring is only 23% in the share of the global trade settlement in 1976, but this figure was adapted into 44%in 2001,exceeding the proportion of letters of credit. Moreover, this development momentum is still increasing,and now the global volume of factoring is increasing at an average annual rate of 16%. Factoring is increasingly getting wide attention from the business and legal community.Unfortunately, as to factoring,both the theory and business practice are obviously very tender in China. In 2003, the global factoring business volume reached 760.392 billion euros, while China's international factoring volume was only 2.64 billion euros.,and domestic one was even more negligible. At present, the Bank of China has led some domestic banks to start to engage in factoring business. However, the capacity of the enterprises, and even the banks themselves to understand and control this business remains limited.Factoring is still has a long way to go in China. There are many reasons for this phenomenon, but I believe that the absence of research on related systems must draw our attention and it is urgent and essential to start the in-depth analysis of factoring system.As the theme of this article, factoring will be deeply studied under civil law vision starting with the assignment of craditor's righs and with comprehensive survey of various national and regional laws and practices of the factoring system. The article is divided into five parts.PartI deals with the definition and history of factoring,and ends with the nature of factoring through assessment of various domestic doctrines about factoring,hoping to clarify the basic legal nature of factoring on the macro level.PartII discusses the difference between factoring and traditional assignment of creditor's rights in detail,including the assignment of general creditor ,future creditor,and the effectiveness of prohibited special agreement,and concludes that it is necessary to break through the traditional system of the assignment of creditor's rights to achieve sound and rapid development of factoring.PartIII,PartIVand PartV focus on the effectiveness of assignment of receivables on factoring parties ,detors and third parties,by combining the traditional theories on the assignment of creditor's rights and relevant business practices of countries and regions in the world.It is expected to make some useful suggestions for the research and commercial development of factoring system.