A Study On The Development Of International Factoring In China And Risk Protection

Along with the advance of globalization-course, competition in the international market is becoming fiercer. Since the 50s of 20th century, international factoring has been widely used in Europe, America and Southeast Asian countries, and has developed rapidly in world's international trade. In 1992, China has introduced the business of International Factoring. And in recent years, it has a very strong momentum .While the outbreak of the financial crisis has brought not only challenges to the development of international trade, but also new opportunities to international factoring.With the spread of global financial crisis, most enterprises generally face with business difficulties and the threat of increased credit risk. Once bad debts appear, the capital chain will rupture at any time. At this point, a more flexible and efficient trade settlement is particularly important. International Factoring is one of such comprehensive settlements, including credit investigation, bad debt guarantees, accounting, financial management, trade finance. It can educe the credit risk for SMEs, especially in current situation when the exchange rate fluctuates so much. Moreover, International Factoring can expand the export turnover for SMEs and help SMEs to expand international market, especially in current situation when the international market demand declines, open up new markets for SMEs is very important. Furthermore, international factoring can provide financing under trade for enterprises, to ensure that businesses can receive the accounts at sight, and to a certain extent, to avoid the risk of long-term exchange rate fluctuations.In order to research and analyze the issues, the first chapter of this thesis briefly presents us the background of the topics, the research at home and abroad, and the innovations. While the second chapter focused on the concept, characteristics, operation process and the theoretical basis of international factoring. And compared with other settlements, we can get the advantage of international factoring .The third part analyzes the present situation of International factoring in our country under the background of financial crisis. In recent years, international factoring in our country grows rapidly and has huge space for development. Although China has made progress in the introduction, digestion, absorption and innovation of international factoring, there are still many problems. The fourth part of this thesis makes an empirical study on financial crisis, interprets the risks from three angles: the importer, the exporter and the factor, and proposes some relative measures. The fifth chapter mainly proposes some countermeasures on how to develop and improve China's international factoring business.