Study On Difficulties And Suggestions About Development Of Our Domestic Factoring Business

Definition of domestic factoring is that a seller transfers the ownership of the accounts receivable to a factor, under the agreement of goods sales with buyers in the same country at present or in the future, and according to the transferred accounts receivable, the factor provides the seller the comprehensive financial service product including two or more from the services of sales subsidiary ledger managements accounts receivable calling, factoring advance payment, sales credit control and credit risk warranty, etc.. The core of domestic factoring is accounts receivable transferring.Domestic factoring business is with completed theory basis and regulations in abroad and brings a few billions EUR turnover annually. The turnover of our domestic factoring is a very small amount compared with other developed countries, and can't meet the great needs of domestic enterprises.Through analyzing the present situation of our domestic factoring, I found the domestic factoring carried out in our country today can't meet the needs of nation enterprises in four aspects: business kinds, business function, service targets and credit line ways. In this essay, the writer considers the regulation vacancies, information unbalanced between the bank and the enterprise, lacking factor professionals and culture in banks, and lacking factor ideas and experiences in the enterprises are the main four difficulties in our factor development. Thus, the writer puts forward the suggestions about the development of our domestic factoring businesses in following five aspects: perfecting the rules and regulations environment; improving social credit system construction; solving the problems of information unbalanced between the bank and the enterprise; strengthening the bank self-building to provide a prerequisite for domestic factoring development; widening publicity and enhancing factoring ideas; increasing factoring objectives, regulating fees and cultivating markets.For supporting the understanding of domestic factoring, there is a sales case in this essay of the domestic factoring between the Industrial Bank and Shanghai Automobile import and export Co., in order to explain the key points, doing processes, risk and profit analyzing about domestic factoring.