A Study Of The Factoring Regulatory System

Nowadays, financial innovation such as P2 P, crowd funding are blooming. Notes, finance lease, pawn, factoring and other services are no longer limited to the traditional business model inherent, but have been given a new function and role, under the background of financial innovation. Faced with the practice of financial innovation, design and supervision of the relevant legal system become stretched.With regard to factoring business, most people think it is originated from Babylon, and in modern sense it is originated in the United States and continental Europe. Since 2009, with the Chinese government’s encourages, lots of factoring companies have set up, particularly bring factoring business to flourish in 2012. The current role of factoring business has been far more than the function to solve the problem of mutual distrust between import and export traders, it is becoming an important way to solve the financing difficulties of enterprise in small scale.As factoring business’ s history is not long in China, there is a lack of regulatory experience and social credit system. If these problems are not well treated, it most likely indulges factoring industry chaos.This paper attempts to draw on relevant experience of developed countries, and analyze factoring’s history and the basic situation in China, point out the current problems, and put forward some suggestions to address these issues. Through these efforts, we hope to prevent systemic risks and promote the sustainable and healthy development of factoring business.This paper is divided into four parts: In the first part, the first chapter is about the theory and Practice Research of the factoring system. The first section starts with the basic connotation of factoring, factoring business classification, expounds the legal nature of the transfer of creditor’s rights, and discusses the effectiveness of factoring contract and prohibits the transfer of claims. The second section focuses on the development of factoring in our country and summary of our country present factoring business development status.The second chapter focuses on the analysis of the risk and its regulation of the factoring business in our country. The first section analyzes credit risk and Hidden factoring business risk that the factoring transfer fails to notify the debtor under the background of China’s current legal system and credit system; currently factoring business innovation and their risks such as the combination of factoring and trust plan, management plan, Internet platform, and also the factoring asset securitization. The second sections are about our current regulatory status of factoring business, the third section introduces the dispute settlement factoring business.The third chapter introduces the factoring operation practice and regulations at home and abroad. It involves the practice and legal system of international, American, Germany. From the above experience, the fourth chapter puts forward how to design China’s factoring business system and regulatory proposals, which is unify legislation, a clear regulatory attitude, clarify responsibilities, encourage the mechanism system innovation, strengthen information disclosure and information sharing, and improve the dispute settlement system.