The Transfer Of Accounts Receivable Factoring Legal Issues

Modern factoring is a comprehensive financial services integrate function of trade financing, account management, bad debt security and collection of receivable accounts. Under the current circumstances, modern factoring play a unique factoring business advantage in solving the existing problems and difficulties of financing for small and medium enterprises and promote export growth. However, the weak of factoring relevant legal system as well as theoretical studies has become a major obstacle to the development of our country, to address the conflicts between the social reality and the need for legislation has become the fundamental motivation for author to explore the legal issues .It is because of the lack of China's factoring legislation which is a high-risk operation in practice that the factoring developed slowly in a long period of time. This thesis first analyzes the law substance of factoring is the creditor's right subrogation of account receivable, and claims a number of aspects of legal risk during the creditor's right subrogation sector. To solve these problems, this thesis makes a comparative study of several representative factoring legislation s in developed countries. After its useful absorption and draw on the experience of the developed countries for reference, it puts forward the following views: In the factoring, the agreement of prohibit ion of creditor's right subrogation should be null and void; Future creditor's right can be subrogated in some certain conditions; Inform should also be one of the factor's right; The inform way should be perfected during the registering .The author hopes that these suggestions be used as an introduction, which will establish and improve of China's domestic factoring on legislation to prevent risks and promote the health of factoring development.This article is divided into four parts.Part I: The general theory of domestic factoring. This part introduced the concept of factoring, and then introduced the concept of domestic factoring and classification, as well as analysing the legal relationship of domestic factoring.Part II: The relevant legal issues involves the transfer of domestic accounts receivable factoring. The first part describe the lags status quo of domestic factoring ,and analyze its main causes .The author pointed out the legal nature and focus of domestic factoring is the debt transfer which with some unique features, and then the author analyzed the legal risk in transfering the accounts receivable.Part III: The comparative study of the relevant laws in transferring the accounts receivable. This part of the debt compare several countries which with the legislation allows, the entry into force of the elements of the transfer of claims and assignment of claims to inform .At the end of each part, we have summarized and with a view to their reference and draw on the basis of gradual improvement of domestic accounts receivable factoring the transfer system.Part IV: The legislative proposals in transferring improvement of domestic accounts receivable factoring. On the basis of summing up the above, firstly, the author listed in the domestic accounts receivable factoring in transferring of the status of legislation and pointed out its inadequacies, and then combined with the third part of a number of suggestions to improve the transfer of domestic factoring link legislative proposals. At the end of the article, the author put forward some measures to deal with the risk of transferring domestic accounts receivable factoring.