Legal Issues Research On International Trade Supply Chain Finance

International Trade Finance is an accommodation of funds and credit around to the international trade settlement. In recent years, as an innovative way of financing international trade, supply chain financing is increasingly used in international trade. It is a bank financing business supplying to the Small and Medium Enterprises (SMEs) closely relating to the Core Enterprises in the same supply chain locating in different countries, based on the credit level of the Core Enterprises and the real business background which arise the determinate future earnings (cash flow) for the direct source of repayment.Because of the international financial crisis, international financial market suffered heavily, while banks deflated credit and trade financing conditions worsen, bringing the SMEs in the shortage of funds. In this context, research on the international trade supply chain financing, as an effective solution to the financial difficulties of SMEs, has a positive meaning.In this thesis, the purposes as follow are expected to achieve: based on the theory of supply chain financing, researching the international trade supply chain financing from legal perspective, introducing the concepts, features, main participates, development status,and three financing modes of the international trade supply chain financing, analyzing the legal relationship among parties, legal basis, legal risks to each mode, summing up the inadequacy of current legal system in regulating the international trade supply chain financing, and then putting forward suggestions to remedy the inadequacy.The thesis includes six parts, and main contents of each part are follows:Part I:Introduction. It describes the research background and significance, research idea, framework and methods, and makes a literature review.Part II:Overview of the international trade supply chain financing. It introduces the definition, features and the main participates of the international trade supply chain financing, and makes some financing examples in domestic and foreign commercial banks.Part III:Financing modes of international trade supply chain financing. Meeting the financing demand of SMEs at different operation stages which are in a weak position in international trade supply chain, the financing modes include: prepayment financing, chattel mortgage financing, accounts receivable financing.Part IV: The legal issues of the international trade supply chain financing. First, it describes the rights and obligations among the parties of international trade supply chain financing in three financing modes respectively. Second, from the view of the legal relationships among the parties and the law nature of contracts, it analyzes the legal basis of the international trade supply chain finance in three modes respectively.Part V: The legal risk of the international trade supply chain financing. In international trade supply chain financing, the complexity of the main participates and operating procedures leads to the complexity and uncertainty of the law application and operation, while, the imperfection of the existing law increases the risk from uncertainty. This part points out the potential risk of operating procedures in three modes respectively, then analyzes the limitation and shortcoming of the legal system which exacerbates the potential risk.Part VI:The suggestions for improving the legal system of supply chain finance. Referring to the regime of law about supply chain financing in other countries and international organization, this part puts forward some improvement suggestions of the legal system and the bank internal control regulation in international trade supply chain financing correspondingly.