On Legal Issue Of International Factoring

International factoring is an unique package of financial services including sales account management, receivables collection, credit risks guarantee and financing.China' s access to WTO will steer its export into a fast growing track, in the mean time it definitely requires that Chinese government to establish corresponding and advanced means of settlement. The attraction of letter of credit is decreasing due to its expensive cost, low efficiency and complicated formalities. International factoring has a lot of advantages. It combines the safety of L/C and the market prowess of 0/A, which make international factoring more attractive than others.Legal issues appear with the adoption of international factoring by many parties. Interpreted by basic law theories and practices, this thesis focuses on the legal issues related to international factoring, and gives the opinions and advices about legislative works, execution of law, and factoring practice.The thesis includes four chapters. The first chapter introduces the definition of factoring, the origin and evolution of factoring, types and procedures of factoring, the legal characteristics of factoring, and legal relationships between the parties involved in factoring.The second chapter discusses on the legal issues of international factoring. It includes the discussion of concrete legal issues of assignment of account receivables, which includes the request, the validity and the legal effect of the assignment of accounts receivables. The chapter also analyzes international factors' conflicts with third parties, including their conflicts with mortgagees, exporters, suppliers, and carriers. It also discusses on international factors' conflicts with exporter' s trustees in bankruptcy cases, and commercial agents of exporter. The third chapter discusses the advantages and necessity of adopting factoring in China.The fourth chapter, the keystone of the thesis, draws conclusion and suggestion. Through the analysis of the above three chapters, the author discusses the legal circumstances of international factoring in China, and puts forward the legal suggestions on how to regulate and prompt international factoring in China.