On China's Factoring Business To Carry Out The Legal Risks And Prevention Of International Factoring

International factoring is the intergated financial sevice in international business between two parties from different countries or regions, in which the supplier assigns his accounts receiveable to claim for payment against the debtor arising from the sales or services contract to the factor, leaving the factor to supply him trade financing, maintenance of the sales ledger, collection of accounts receivable and full protection against bad debts.International Factoring is a new method of payment after the usage of remittance, collection, letters of credit in international trade, which has been developed into a global financial business and the main method of payment in international trade. Rapid development of the International Factoring not only generates enormous profits, but also brings corresponding risks to factor. An important reason of high risk existing in international factoring is that there are different views about the legal nature of international factoring currently. The qualitative in law will directly affect the relationship of rights and obligations, the responsibility of sharing and the demarcation of the legal risks between the parties in international factoring. The paper discusses possible legal risks and preventive measures of international factoring mainly through analysis of legal basis and relationship between rights and obligations of the parties in international factoring, which seeks a better way to perfect our legislation on China's international factoring.This paper focuses on two basic points:First, in theory, that is, the legal analysis of international factoring;This paper focuses on two basic points: First, in theory, that is, the legal analysis of international factoring; Second, in practice, legal risks and preacutions when practising international factoring business, legislative risponse to China's international factoring legislation. Judging from the strcuture, contents of this article have been divided into four chapters, and explain as follows:Chapterâ… after analyzing the different definitions of factoring, concluded concept of international factoring. Then elaborated the classifications and operation mechanism of international factoring.Chapterâ…¡aimed at the legal analysis of international factoring. First, focus on analysis of legal basis about international factoring, concluded assignment of the receivables as legal basis of international factoring through comparsing international factoring with some legal acts such as debt pledge, agency and liquidity. Then explained the legal relationship between exporters, export factors, import factors and importers in international factoring conjunction with "Unidroit Convention on International Factoring" and "General Rules For International Factoring" .Chapterâ…¢focused on legal risks faced by factors at the time of assignment of receivables. After pointing out the legal risks , the author proposed preventive measures.Chapterâ…£focused on preventing legal risks from the point of construction of the rules of China's international factoring. After introducing the situation of the development and unperfected legal environment of China's international factoring service , the author posed some legislative proposals that would do something good to perfection from some different aspects, such as the construction of the State legal system, in accordance with international conventions and international practice, the ordination of supervising of regulations of the government, etc.Further to guard against the effects of legal risks from the system level.