| As a comprehensive transnational financial service, international factoring hasbecome increasingly prevailed under the setting of open account are frequently usedin international trade. According to combined the special functions of internationalfactoring with the problems faced by Chinese SMEs (Small and Medium-sizedEnterprises) during their exporting, this paper analyses the applicability and necessityfor Chinese SMEs to apply international factoring to their exporting.This paper firstly lays the outline of international factoring's position ininternational trade. Secondly,based on its special functions, this paper makes thedetailed analysis of the applicability of international factoring for SMEs. Thefollowing section focuses on analyzing the necessity for Chinese SEM to applyinternational factoring to their exporting. Finally, this paper puts forward specificmethods to improve and settle these factors preventing Chinese SMEs from taking theadvantages of international factoring. |
