A Study Of Bank Factoring Based On The Perspective Of SMEs Financing

International factoring, which is a collection of international financing, salesledger account management, collection, risk control and bad debt guarantee is a bodycomprehensive international financial services. Although factoring has beenintroduced to China since1980s, it did not popular in Small and Medium-sizedEnterprises (SMEs). More and more funding pressure that the SMEs face under thesetting of open account is frequently used in international trade. SMEs as an importantpart of the national economy, its status and role in the social economy cannot beignored. However, much attention has been paid to SMEs on financing problems. Itscongenital defects and external environment lead to the ineffective use of financingchannels, making SMEs always beset with funding problems.This paper firstly analyzes the funding problems of SMEs, which we foundedthat the capital is mainly come from internal funding and the characteristics of funddemand are short-term and great-mobility. Therefore, we can reduce the pressure ofSMEs and improve intermediate income of commercial bank via study factoring. Wealso found that part of factoring is an excellent mean of customer relationshipmanagement and it can solve the funding problem effectively by recruit thereceivables. In term of SMEs and commercial bank, it is practicable that usingfactoring. Finally, this paper puts forward specific methods to improve and settle thesefactors preventing Chinese SMEs from taking the advantages of banking factoring.