International Factoring A Number Of Legal Problems

International factoring is a complete financial package that combines working capital financing, credit risk protection, accounts receivable bookkeeping and collection services. With fierce competition of international trade, the buyer's market is gradually formed and the using rate of Letter of Credit—the traditional method of settlement is decreasing year after year. As an innovatory financial package, however, international factoring has gained wide recognition and application in the world.Combined with the Convention and practices on international factoring, the author applies the traditional theory of Civil and Commercial Law in this paper. Introduce the definition, classification and the operational procedure of international factoring. Analyze and research the legal relationships between the parties, the risks and preventions of the parties, as well as the assignment of accounts receivable. Summarize the development and legislation status quo of factoring in China. Finally, provide three proposals to promote China's active development in the factoring industry.