International Factoring And Related Legal Issues

At present, the world buyer's market is coming into being. With the rapid development of the international trade, factoring has already replaced letter of credit as the main method of payment in the Occident. International factoring is a comprehensive tool of international settlement and financing provided by factors to exporters, which involves collection of accounts receivables, export trade financing, sales ledger administration, credit control and full protection against bad debts. As a promising field of business, international factoring is playing a more and more important role in promoting the development of international trade. With the creation of new business, legal issues appear. The writer is to analyze the related legal issues of international factoring on the basis of traditional theory of civil law and expects to benefit the construction of legal system of international factoring in China.The writer demonstrates her viewpoint in four parts. The first part introduces the origin, development, definition and the classification, procedure, business items of international factoring and analyzes the legal characteristics and application terms. The second part argues about the legal construction of international factoring. Based on discussing the popular opinions on legal basis of international factoring, the writer puts forward her view that the assignment of accounts receivable is the basis of international factoring. Furthermore, the writer argues the concrete legal issues of assignment of accounts receivables, which including the request and the legal effect of assignment of accounts receivables. The writer analyzes the legal relations between the international factoring parties including exporters, factors for exporters, factors for importers and importers in the third part. At last, based on the analysis of the application and the comparison advantages of the international factoring, the writer discusses the necessity of developing the international factoring business in China. Combing the knowledge of factoring practical exercises in China, the writer puts forward some legislation suggestions as viewed from the legislation status of international factoring in order to accelerate the developing of the international...