On The Legal Issues In Accounts Receivable Factoring Contracts For The Transfer Of Priority Conflicts

Factoring as a new financial transaction settlement clear the way for its uniquecollection of financial intermediation, integrated financial service mode importerscredit rating, sales account management, credit risk guarantees, receivables collectionand other services which one is for people to provide related services. Our factoringbusiness is hot to carry, and also increasingly become the focus of people’s favor.According to related statistics, since2014, Tianjin Binhai New Area alone, there havebeen nine commercial factoring companies established, in which Yin Li, Sheng Yeindustry, Xin DaHarbour Business Factoring Ltd. and other companies have morethan100million yuan of registered capital. According to District Commission ofCommerce, the person in charge, on April2014, the new district has112commercialfactoring companies to settle, including40foreign-invested commercial factoringcompanies, registered capital of699million U.S. dollars;72domestic commercialfactoring companies, the registered capital of$5.932billion, GE, SuNing, Digitaland other large commercial factoring Ltd. have set up in the new district. Visiblespeed the development of our commercial factoring is so amazing.Factoring in the time China started late, at the beginning of the1990s, whenfactoring business as a pioneer of China’s Bank of China, eyed the factoring businessin this huge market, and strived to forge ahead, with Paul management regulationsmore advanced developing countries to exchange experiences, and became an international factoring in a Federation member, from the development of factoring onthis start.Factoring business, there are many services, but the first is its core business,namely the transfer of accounts receivable factoring in reality, due to other providersand other rights of factoring receivables for debtors who repaid sum conflict rightplace. But because of the way the world’s financial and commercial operations, andthe extent of differences in legislation, there are different ideas on how to determinewhen a conflict right of first refusal order; coupled with the relevant laws andregulations have not yet factored uniform provisions applicable to the majority offactoring applicable laws and regulations are transformed in accordance with thespecific provisions of national law on civil or commercial law, and therefore, whenfaced with the transfer of accounts receivable factoring conflict of rights, how todetermine the order of priority for repayment between rights holders, namely Paulpriority assignment of accounts receivable management, has become the focus ofsolving issues related to the transfer of accounts receivable.The author is a priority issue in accounts receivable is based on the analysis bythe international factoring transactions for accounts receivable factoring prioritysolution, combined with the specific set of relevant laws and regulations, madeapplicable to China’s specific national conditions the transfer of accounts receivablepriority setting mechanisms, and thus how it should be our factoring business to bettercarry out its own proposals.The first chapter in the concept of factoring receivables is overview. In the firstsection the author defines factoring in concept, introduced in the second quarter is therelationship between the transfer of accounts and receivable factoring, mainlythrough the nature of accounts receivable factoring and the transfer of the accountsreceivable factoring is one of the core business of these two aspects to elaborate. Thesecond chapter analyzes the transfer of accounts receivable factoring prioritytreatment, first section describes the legal relationship of accounts receivablefactoring in transfers; Section specific issues raised in the transfer of accountsreceivable priority conflict for a more intuitive understanding; Section is through the introduction of International Trade receivables transferred priority conflict resolutionmechanisms, the relevant section II that how to solve the problem is analyzed ininternational trade, and in the basis of the relevant rules of international tradeconventions, translate into national law applicable to the case, namely the transfer ofaccounts receivable priority conflict rules applicable to specific countries. The thirdchapter is facing the current situation on the domestic receivables transferred conflictsof priority issues for analysis, combined with our factoring and related provisions ofthe current situation of China’s domestic legislation, the transfer of receivables byway of priority conflict resolution theory analysis. The fourth chapter is based on thethird chapter analyzes the proposed recommendations related laws and regulationsapplicable to the conduct of the business of factoring, factoring business in order toimprove the country ’s legal regulations.