The Legal Dispute Of The Factoring Contract

With the contemporary growth of market economy, competition is becoming more and more fierce, the status of buyer rise up gradually, leading to the seller had to accept for their own relatively harsh conditions---- to provide goods or services before receiving payments. This is not conducive to the seller of financial flows; it will restrict the development of enterprises. Factoring emerged on this basis. Factoring is a breakthrough product of commercial banks, via the acquisition of accounts receivable, bank business provides financing and accounts receivable management, accounts receivable collection, bad debt guarantees and other integrated services. Accounts receivable factoring can be used to make in advance and secured, thus grow. But various reasons limit, factoring in China's development is not very well and there are still some puzzles in the management and practice.In this paper, in the form of case studies, through the "Bank of China Ltd. in Cang Zhou Branch v. Fu Kang fuel factoring contract disputes," analyze and summarize the focus of controversy, and analyze the substance and feature of factoring business. To inquire and analyze the reasons for controversy,We will make some legal suggestions for better and faster development of factoring business.There are totally four sections in this paper:The first part is the introduction of the case. This section details the “Bank of China Ltd. in Cang Zhou Branch v. Fu Kang fuel factoring contract disputes ", according to Bank of Cang Zhou Branch and companies of different views and the Court of First Instance, the second instance court to make a different judgment, summarize the point of dispute.The second part introduces what is factoring, international factoring business origin and progress in our country, and by factoring business content presentation were discussed in detail, in order to leave a more factoring business comprehensive and profound understanding.The third part comes back to the case with a certain degree of understanding of factoring business. Combining with the relevant law, analyze the focus of controversy.The fourth part analyzes the reasons and put forward some specific proposals to promote the factoring business can grow more healthy and rapidly.