Bank Of China Hunan Branch Accounts Receivable Factoring Risk Management

In recent years, with the continuous development of China’s market economy,competition among enterprises has increased, with increasing prevalence of commercialcredit, enterprises are often in the form of accounts receivable by a large amount of money.Factoring, factoring, is to pass the assignment of accounts receivable as the basis, to providecomprehensive financial products include prepaid financing, accounts receivablemanagement, accounts receivable and the guarantee for the integration of customers. But thecurrent credit environment is still not perfect, a large number of enterprises accountreceivable faces many risks, and factoring as a kind of credit financing, do a good job fromthe perspective of the commercial bank risk management becomes more and more important.Based on the analysis of its historical origin and history evolution, reveals the essenceand connotation of factoring. At the same time, based on the theory of relationship lending,accounts receivable management theory and financial risk mana gement theory, through theanalysis of the Hunan branch of the bank factoring business operation mode and operationprocess is summarized, put forward the problems existing in the development of the. The coreof the whole paper is divided by the Bank of China in Hunan Province, and put forward thecurrent bank of China branch in Hunan province should be legal risk, the existence ofaccounts receivable factoring business background is real credit risk and the operation risk isnot clear division of responsibilities to, on the base of analyzing the specific marketconditions for factoring to Chinese bank the detailed analysis of the reasons, thecomprehensive risk may be encountered in the process of handling factoring and existing,discusses the specific manifestations Chinese banks in the actual operation of the accountsreceivable factoring in three high risk. This article proposes the Hunan branch of the bankrisk management of accounts receivable factoring business, countermeasures andsuggestions.