International Factoring Studies Of Legal Problem

International factoring is an alternative method of international settlement and financing provided by factors to exporters, which involves financing, sales ledger administration, collection of accounts receivable and credit cover.Under the current situation of buyer' s market, fierce competition of international trade and diverse methods of international settlement, international factoring business meets the demands of development of international trade because of its particular advantages and consequently has gained wide recognition and application in the world. With the development of this new business, follow the relevant legal problems. International factoring involves several parties, among who exist complex relationships involving each party' s rights and duties. The core of international factoring is account receivables assignment, which is easy to bring many legal issues. On the basic of traditional theory of civil law, the purpose of this paper is to study the core of international factoring and other problems around it. Then it discusses that the bank will be faced the risk existing in international factoring and risk control. At last some suggestions are given.In view of the above, the paper consists of four chapters. First chapter is to introduce the basic knowledge of international factoring such as its concept, characteristics and the different operating systems. In the same time, international factoring is compared to other trade finance. Second part mainly discusses international factoring law, and studies the legal relationship among parties involved, and the resolution of these problems need to deal with different country' s regulations on law since they come from different countries. So this chapter is to introduce something about UNIDROIT CONVENTION ON INTERNATIONAL FACTORING and FCI. And it mainly deals with the legal issues on account receivables assignment that is the core of the whole international factoring. And other problems around this core are discussed. In the same time, it analyses complex relationships involving each party' s rights and duties. The third chapter discusses the risk existing in international factoring and risk control. The fourth chapter, that is the last chapter, is some suggestions. On the basic of the theory, some suggestions on our future development of international factoring are given in the last chapter.