Legal Risk And Control Of SMEs International Factoring Business

Since the global financial crisis，the economic recovery of the major importingcountries in the world,as the representative of the United States, was slow. It hasseriously affected China’s exports. According to data of the National Bureau ofStatistics shows that China’s favorable balance of foreign trade has been threeconsecutive years of a downward trend since2009. Import demand has been to makethe world’s foreign trade market from a seller’s market into a buyer’s market.A seriousimpact has affected the vast majority of export processing SMEs on the southeastcoast of China. And in a buyer’s market, international trade importers are difficult toaccept letters of credit and other traditional international trade settlement. They aremore inclined to use the trade settlement mode of selling on credit in internationaltrade which is more risk for the seller but less risk for the buyer. As the past two years,trade financing situation of SMEs in China is very optimistic. It can apparent fromZhejiang Wu Ying illegal fund raising case. So, in this case, the majority of small andmedium enterprises in urgent need of international factoring trade, receivablescollection and receivables management in one of the new international tradesettlement.In this paper, starting from the perspective of SMEs in international factoringbusiness, exploring how legal risks in international factoring business, create a stableand healthy legal environment of international factoring.The text is divided into four chapters, about36,000words.Chapter one is overview of international factoring. First of all, the concept ofinternational factoring; Second, analysis of the legal nature of the internationalfactoring and international factoring the legal nature of the doctrine cited the threemainstream in the field of international factoring; Finally, to clarify the internationalfactoring and other trade payment (credit, letters of credit, discounted) difference.Chapter two is the advanced experience of the international investigation. First,UNIDROIT and the Convention on International Factoring explore UNIDROITconvention’s provisions applicable mandatory non-recourse bad debt guarantees onadvanced experience; Second international factoring Manufacturers Association and its international factoring General research focuses on international factoring Law "applies to the transfer of accounts receivable and other issues; final four clarify theadvanced experience of Western countries, international factoring business.Chapter three shows the SME international factoring business legal risk and itsrelated causes. First, be a whole overview of SMEs in the development ofinternational factoring; Second, to participate in international factoring main cluefrom the supplier of import factoring, export factoring, exporters, importers fouraspects of SMEs in China causes of the international factoring legal risk to beattributed; Finally, SMEs in China international Factoring legal risks set forth in theinductive type of risk based on: the performance capabilities of SMEs, the complexregulation of international factoring, small and medium enterprises adhere to thetraditional concepts, laws and regulations construction lag, lack of creditmanagement system.Chapter four is recommended preventive measures for SMEs of internationalfactoring business legal risks in China. This chapter discusses three main areas: First,improve the domestic risk prevention system. Including: perfect Factoringqualification system, the norms of international factoring business contract, improvethe legal regulation of the international factoring business, formulate a unifiedbusiness rules; Secondly, the integration of international risk prevention system.Include: promoting the improvement of international rules, establish foreign Factoringqualification, to speed up the signing of international agreements and conventions,etc.; Finally, improve risk prevention supporting mechanism. Include: advancingthe work of the international credit information, promote the insurers to participate ininternational factoring business to accelerate international factoring personneltraining, to change the traditional concept of the enterprise, and promote thedevelopment of domestic commercial factoring.This paper focused on the type of SME International Factoring legal risks, causesand laws to prevent environmental and health laws and create writing. The mainpurpose of the legal issues involved, identify where the potential risks to theenvironment in international factoring has become a new way of international tradesettlement, as much as possible about this emerging international factoring trade settlement. Combined with advanced experience with different mature views on theirown knowledge, it is to improve the legal system of China’s international factoring.