Case Analysis Of Commercial Factoring Asset Securitization

In recent years,the business of commercial factoring has developed rapidly,and the business volume has doubled year by year.The total turnover has exceeded the trillion mark in 2017.However,with the rapid development of commercial factoring,its own source of funds has become a stumbling block to its rapid development.Commercial factoring companies have been trying to find a low-cost financing method.Since 2017,commercial factoring companies have made a lot of financing through asset securitization.Asset securitization is a better financing method for commercial factoring companies.But there are also many problems.Mainly(1)Small and medium-sized commercial factoring companies are difficult to carry out asset securitization.(2)The authenticity of factoring financing creditor's rights constituting basic assets.(3)The regions and industries of basic assets are too centralized.(4)Commercial factoring companies mainly aim at financing through asset securitization,but fail to achieve asset statement through asset securitization,thus realizing the role of optimizing financial statements.(5)The problem of insufficient liquidity in the secondary market.Shengye Factoring issued in January 2018 "Shengye Factoring Pharmaceutical Assets Phase I Asset Support Special Plan".This asset securitization has made Shengye Factoring obtain a lot of funds at a lower cost.One of the highlights of this case innovation mode is that both sides of the transaction have neither strong buyer nor strong seller to endorse credit,and the whole transaction structure is unprecedented innovation in China.This innovation mode also paves a broad way for small and medium-sized commercial factoring companies to carry out asset support projects.The innovative mode of this project has attracted the attention of the industry.This project is awarded the "most influential innovative Asset Securitization Product award",which is known as the "Nobel Prize" in financial industry.There are many advantages in design.Based on the current situation and existing problems of commercial factoring asset securitization,this paper first introduces the basic information of "Shengye Factoring Pharmaceutical Asset Phase I Asset Support Project".The various sources of funds of Shengye Factoring are analyzed.Through analyzing the advantages and disadvantages of various financing instruments,it is concluded that asset securitization is an ideal financing means for commercial factoring companies.Secondly,it analyses the success of this case:it solves the difficulties of small and medium-sized commercial factoring companies in financing through asset securitization and the authenticity of factoring financing creditor's rights constituting basic assets.Suggestions are put forward for the related product design in the future.Thirdly,the problems in this case are analyzed:the distribution of basic assets is too centralized,the statement of assets can not be achieved,and the liquidity of products in the secondary market is poor.The reasons for these problems and corresponding improvement methods are also analyzed.Finally,the case is summarized.Combining with the current development trend of asset securitization,this paper puts forward some suggestions on the design of asset support special plan and the development of commercial factoring asset securitization in China.