The Problems And Countermeasures Of The Current Legal Regulation Of China's Factoring Business

Factoring derives from international trade, and it is a financial transaction and a type of debtor finance in which a business sells its accounts receivable to a third party at a discount.When Creditors sell goods or provide services to sell by credit sales, it can provide financing circulation service, manage receivable and collection accounts, manage sales accounts and guarantee credit risk,etc.With the rapid the development of international trade on a global scale, a buyer's market gradually formed, and the buyer initiative in the deal. Factoring,as a new way of financing and settlement, greatly cater to the needs of buyer's market under the current situation, and catered to the new trend in international trade settlement.It is easy and flexible to compensate for the risk is bigger but sell on credit or some other deficiency of international trade, therefore factoring developed rapidly for nearly half a century.Since the 1960 s, the western developed countries have carried out the modern factoring gradually, which has have mature factoring market after more than half a century of development.However factoring in our country just came out in recent years and developed fast.But the theory and system of factoring in our country is extremely imperfect and in the primary stage.In addition, our legal regulation of the factoring is not perfect, for example,lack of industry control.Thus, we have to learn from foreign advanced experience and accelerate to develop a legal system for meeting the demand of the development of factoring.This article reveals the current problems of factoring in judicial practice through analyzing the two typical cases of factoring, and then analyses the basic principle of factoring.And this article will reveals the problems about the factoring in our country under the present situation,especially the legal regulation problems.This paper includes four parts: the first part, introduction and analysis of two typical cases of factoring in our country,and reveals the factoring business problems directly in the judicial practice in our country from the perspective of judicial practice and reveals the main ideas.The second part, this paper will analyze the basic principle of factoring, including basic legal content,legal basis, legal relation of factoring.The third part,this paper will analyze emphatically problems of factoring legal regulation in our country,and make a study of comparative about the legal regulating factoring business.The fourth part,this paper will give suggestions for improving the factoring legal regulation in our country, including improving the relevant legal system, making the dispute settlement mechanism better and perfect the relevant supporting system of factoring.