China's Commercial Banks, International Factoring Business

International factoring is an alternative method of international settlement and financing provided by factors to exporters, which involves financing, sales ledger administration, collection of accounts receivable and credit cover. It has been the major methods of international trade settlement. But the total amount of our Factoring is less than one percent of the world. Seen from the operating structure of Assets, Liabilities and Intermediary Services, Intermediary Services occupies little proportion, International factoring is fairly weaker. Following with the acceleration of openness of the Banking Sector, commercial banks of China will confront the double challenges of intense competition from foreign banks and increasing finance services of clients all over the world. Therefore, International factoring is the vital finance services field commercial banks of china must strengthen.As there lies clear weakness in launching and risk guarding of International factoring, the important subject we must solve is how to deeply research the problems we face, draw lessons from developed countries according to our fact, enlarge the operation range and market share. This paper separately analyses the risks that commercial bank factor confront when they are developing and applying international factoring business, brings forward corresponding precaution steps and provides some suggestions so as to launch the business successfully.