Problems And Countermeasures Of China's International Factoring Business Recommendations

In the global scope, international factoring has already been comparatively mature, but it is just at its starting stage of development in China and has very limited effects here. The thesis discusses the problems existed in Chinese international factoring and proposes some recommendations on how to develop the international factoring in China.To make a better research and analysis, in the first chapter the thesis briefly illustrates the origin background and development, functions and characteristics, varieties, the operation pattern and the procedures of international factoring, and also states that it is both the necessary outcome and the power for the development of international trade and it is also an advanced settlement method. In the second chapter, by introducing its exercise in China, we can see that China falls behind in this respect. Then the necessity of promoting international trade in Chinese export is put forward through the analysis of Chinese export. With the comparison to the traditional settlement methods, such as letter of credit, document against acceptance and open account,it is proved that international factoring has a comprehensive advantage. International factoring is beneficial to importers, can increase exporters' competition capability and bring new development opportunities for Chinese commercial banks.The problems now existed in Chinese international factoring are analyzed in the third chapter. They are: the lack of full understanding of international factoring in Chinese export companies, the backwardness in their thoughts and the lack of credit among them; Chinese commercial banks' wrong market targeting and weak anti-risk capability; the mismatch of law; and the shortage of talent. These problems hold back the development of international factoring in Chinese export, whichshould be very advantageous in the practice. Accordingly, the last chapter of the thesis puts forward some recommendations including: the export company should get to know international factoring comprehensively to change their out-of-date thoughts, establish the concept of commercial credit and risk avoiding; Chinese banks should focus on the small and medium companies as their main customers and investing more in marketing, increase their anti-risk capability to let the exporters appreciate the service of factoring better; the relevant departments of the government should give some support policies for international factoring and improve the law circumstance; professional talent should be cultivated. With the focus to develop Chinese international factoring, the thesis systematically discusses the current situation of Chinese international factoring and gives some reasonable suggestions on those problems. The thesis also says that international factoring is not only adaptive to the buyer's market, but also can be a new power in increasing Chinese export volume. It is a new settlement tool that benefits to exporters, importers and the factors. Finally, the author has done a lot of efforts in collecting the newest materials, both domestic and foreign, and analyzed problems with the practice of some export companies and commercial banks. All of these are to put forward some practical analysis and discussion so that this thesis can provide the readers some valuable reference if it is possible.