Research On The Legal Problems Of Factoring Financing In SMEs

Small and medium-sized enterprises in our country has smaller scale,and property that can be used for the mortgage loan is limited,the loan is difficult,so the financing of SMEs is often difficult.Factoring financing is based on the transfer of accounts receivable(debt),which can help small and medium-sized enterprises to complete the financing.Small and medium-sized enterprises in the accounts receivable,can not only shorten the production cycle,such as purchase,but also the flexibility to expand the small and med ium-sized enterprise capital turnover,turnover and further implementation of small and medium enterprises to complete the capital accumulation and reproduction,a healthy and stable development for SMEs.In order to solve the financing difficulties of small and medium-sized enterprises,and promote the healthy development of small and medium enterprises,the State encourages the development of factoring business and set up a pilot project to alleviate the financing difficulties of SMEs.Factoring financing has the legal nature of the assignment of creditor's rights.In the process of factoring financing,the assignment of creditor's rights is realized by the agreement between the assignor and the assignee.Factoring financing effect including assignment assignor(Supplier)of the assignment of claims for warranty liability,the original creditor interests of all creditors(FCI)to the new internal force and factoring financing debtor(the buyer)received the notice of assignment of rights,the obligor(the buyer)to the assignor(Supplier).Defense effectiveness can advocate to the transferee and other external.Fully understand the effectiveness of the transfer of factoring financing creditor's rights,clear the rights and obligations of all aspects of factoring business,is an essential prerequisite of small and medium enterprise factoring financing and solving the financing difficulties of SMEs.Factoring business has many advantages for the development of small and medium-sized enterprises,but it has to face many practical problems in the process of factoring financing.Factoring face supplier right of creditor's rights defects,the basic contract flaws and creditor's rights transfer restrictions,fraud and other issues to supplier;supplier facing adverse credit,factoring the court finds that the different problems of the factoring legal relationship nature.How to understand these problems in practice become the key to solve the problem and promote the stable and healthy development of factoring business.Give full play to the role of small and medium enterprises factoring financing and ease the financing difficulties of small and medium enterprises in China,we need to solve the problems encountered in the practice of factoring financing in small and medium enterprises,and promote the healthy development of factoring financing.First of all,we should improve the legal system of factoring financing of small and medium-sized enterprises,improve the laws and regulations of factoring,improve the mechanism of dispute resolution;Secondly,we should improve the institutional environment of small and medium enterprises factoring financing,set up the supervision system of Internet factoring,train the factoring professionals to promote the healthy development of factoring financing;Finally,to strengthen the risk control of small and medium enterprises and diversification mechanism of the loss,to introduce insurance to reduce the risk of factoring financing,and promote the healthy development of factoring financing.This paper mainly includes four parts:The first part mainly discusses the concept of factoring financing,the current situation and the plight of China's small and medium-sized enterprise factoring financing.This paper mainly expounds the present situation and difficulties of factoring financing of small and medium sized enterprises in China.The second part mainly expounds the legal structure and the legal analysis of factoring financing.It clarifies the nature of factoring financing and the realization and effectiveness of the transfer of creditor's rights in factoring financing.Besides,we analyze of the advantages and disadvantages of different types of factoring financing.The third part is the main part of this paper,focusing on the legal problems of factoring financing in small and medium-sized enterprises.This paper expounds the legal problems encountered in factoring financing of small and medium-sized enterprises from different angles,such as factoring,suppliers and buyers.To fully understand the legal problems encountered by small and medium enterprises factoring financing,to promote small and medium enterprises factoring financing,and ultimately solve the financing difficulties of SMEs.The fourth part is an important part of this paper,focusing on promoting the healthy development of factoring financing.This part makes analysis from different angles,such as perfecting the legal system of factoring financing in small and medium sized enterprises,improving the institutional environment of small and medium enterprises factoring financing,strengthening risk prevention and loss dispersion.In order to promote the healthy development of factoring financing.