A Study On Chinese Factoring System

Factoring is originate from the international trade. It provide financialmanagement,receivable collection, credit risk insurance, trade finance for trade credit.With the continuous development of international trade on a global scale, a buyer’smarket is Gradually formed. The buyer occupies the dominant position in thetransaction. In order to adapt to the needs of the buyer’s market situation,there comesthe factoring. The modern factoring business sense began in the late nineteenthcentury in the United States.Then got a great development in Europe. Factor ChianInternational provides statistics show the volume of modern factoring business ismore than the amount of credit business. This shows that a growing number ofimporters and exporters agree with factoring, factoring business plays an increasinglyimportant role in international trade. In recent years, the number of factoring businessin China is growing, more and more commercial banks as well as professionalfactoring company launched a factoring business. However, due to the factoringbusiness inLack of factoring legal risk prediction and prevention China rise very late,factoring laws and regulations is not perfect, lack of social credit. These are largelyrestricted to the further development of China’s factoring.In this paper,through theresearch of factoring evolution and some basic legal concepts of factoring and thelegal relationship of the parties, Analysis of the plight of the current situation anddevelopment of China’s factoring. On this basis, put forward some ideas andsuggestions to improve Chinese factoring system. This paper is divided into five chapters:The first chapter propose theproblem.Eliciting the factoring business by two cases in the practice of law. Thesecond chapter discusses the theoretical basis of factoring system.Firstly, introducesthe basic legal content of factoring.Secondly, introduces the function of factoringsystem.Thirdly,Elaborates the relationship of four parties in factoring.lastly,introducethe differences and relations between factoring and other related businesses. The thirdchapter is mainly about the factoring system of comparative Law research. Draw therelevant legislative experience through study international factoring legal norms andother countries’ legal system. The fourth chapter discusses the development and Drawthe relevant legislative experiencethe plight of Chinese factoring system.Through theintroduction of the practice of our country factoring development situation and therule of law, Summarized some legal problems of factoring development in China.Thelast chapter is to discuss the improvement of Chinese factoring system,mainly fromhow to perfect regulations and rules, perfect factoring supporting system.