Analysis On The Legal Validity Of POS Factoring:From The Case Of Cvbaoli

Contrary to the traditional factoring based on the transfer of existing accounts receivable,the POS factoring business refers to the fact that,the merchant will transfer the accounts receivable,which may be obtained through the POS machine in the future,to the factor in advance for the purpose of financing.This innovative business model based on future accounts receivable transfer without a basic contractual relationship is an important solution to the financing difficulties of SMEs.However,the effectiveness of such business model is controversial.In the typical "CVBAOLI case",the second instance court denied the existence of factoring relationship between two parties on the grounds of that the future accounts receivable produced by POS machine is not transferable because of its uncertainty.This case reflects that the current law system and the judicial trail can not be applied to the new business model.Based on the analysis of the current legislation on commercial factoring,relevant theories and judicial cases in china,as well as the foreign legislation practice,this article reviews the second instance verdict of "CVBAOLI case",and puts forward the following opinions: first,the future accounts receivable produced by POS machine can be used for factoring financing as it is identifiable and has a reasonable expectation;second,the effectiveness of the contract will not be affected even the subject is uncertain at the time of signing the contract;third,the legal relationship between the two parties is recourse factoring;fourth,from the perspective of technology finance,it is recommended that the juridical practice should maintain a tolerant attitude to the development of business innovation.At the same time,this article proposes to provide system guarantee for the development of POS factoring business from two perspectives of legislation and interpretation.