Study On Legal Obstacles To The Development Of International Factoring In China

The international factoring is purely exotic for our country,it's earliest prototype created from the trade agency activities between England and America.The two main entities that carry out factoring business are commercial banks and commercial factoring companies.China's commercial banks began to explore the factoring business since the 90 s of last century,however,the factoring business is the “sideline” because of bank's limitation of resources and business focus and risk control.A lot of commercial factoring companies established since the Ministry of Commerce agreed to carry out the pilot program of commercial factoring in Tianjin Binhai New Area and Shanghai Pudong New Area in 2012,nevertheless,due to the restriction of China's foreign exchange and financing policies,the carrying out of international factoring business is still difficult.This thesis will analyze the legal obstacles when the commercial factoring company starts their international factoring business from the perspective of credit background,business barrier and cross-border financing activities.The first chapter is an overview of international factoring,firstly,we sort out the different definitions and classifications of international factoring.The discussion of international factoring is not only involved about foreign exchange but further extend to the credit and cross-border financing which may influence the development of international factoring.The second part of this chapter is the comparing of different theories about the nature of international factoring and the analyzing of rights and obligations among the four parties based in two factors factoring.Finally we combs the development of China's international factoring and further learn something more about the current situation about commercial factoring.The second chapter is the analyzing of legal obstacle about the developing of China's international factoring.We introduce the profile about global factoring and further learn the normative mechanism from international law in first part.We found that the provision of international factoring were lack of practicality and the reference to court jurisprudence has regional limitations after learning the China's laws and regulations in second part.We analyze the legal obstacle in detail in the third part,including the credit law system,foreign exchange regulations and cross-border financing policies which may hinder the developing of international factoring.The writer put forward corresponding suggestions to promote the development of international factoring in the third chapter.First of all,we discusses the necessity of removing the obstacles to the development of international factoring from the point of view that international factoring can help to solve the financing problem of small and medium enterprises.And then we analyze the feasibility of removing the obstacles to international factoring,lastly,we raise the suggestion from three aspects,including the relaxation of foreign exchange control,standardization of credit activities and the refinement of cross-border financing policy.