International Factoring Accounts Receivable Transfer Of Legal Issues

International factoring is an unique package of financial services including sakes account management, receivables collection, credit risks guarantee and financing.The essence of international factoring is the assignment of accounts receivable. The adoption of international factoring is based on a contract of sale of goods between a exporter and a importer. When the contract comes into force, the exporter may assign to the factor the account receivables arising from the contract of sale of goods. And when there is a two-factor international factoring, the export factor shall also assign to the import factor the account receivables. Then the import factor becomes the creditor of the importer. The assignment of the account receivables shall be in accordance with the terms prescribed by the law, or the assignment may not come into force. There also exists many contradictions of priority in the assignment of receivables on international factoring. Solving strategies shall be given our so as to guarantee the adoption of international factoring.The situation and legal environment of the international factoring in China is unperfect. The contract law of China is devoid of provisions on the assignment of the account receivables. A new legal system shall be established in order to perfect the legal environment of the international factoring in China. And the new legal system shall contain the universal and the particular provisions on the assignment of the account receivables.