A New Mode Of Settlement In International Trade-International Factoring

International factoring is an integrated financial service which combines an investigation of commercial credit, accounts receivable management, credit risk guarantees, as well as trade finance. It has been carried out for 30 years in the international community and has played an important role in promoting the development of international trade. However, the business in China is still in its initial stage. In recent years, with China's accession to WTO after the opening of the financial market, foreign banks swarmed into China continually, and China's commercial banks gradually became aware of the importance of international factoring and began large-scale promotion of the business. This thesis consists of six parts to introduce international factoring.The first part of the paper mainly points out that modern international factoring business started from American commercial agency business in the 1830s, and then gives the definition of international factoring, followed by the types of international factoring business, such as disclosed factoring and closed factoring, two factor mode, direct import and export factoring, and back-to-back factoring.The second part, first elaborates overall advantages of international factoring, and comparative advantages with export credit insurance and other payment methods. Next it introduces the condition of international factoring, and finally it points out the special considerations of The UNIDROIT Convention on International Factoring and The United Nations Convention on the Assignment of Receivables in International Trade. At last it introduces the business flow of international factoring business, taking two-factor mode as an example.The third part first introduces the development of international factoring in America. in Europe and then in Asia, followed by the experience of international factoring business in foreign countries. Factoring business originated in Europe and the United States. In its several hundred years of practice it has been gradually improving, and many of them deserve us to learn and use for reference.The fourth part first points out the status quo and development trend of international factoring in China, and then stresses the international factoring which has huge potential and wide market outlook in China, and in the end introduces current problems concerning international factoring in China and analyzes the reasons specifically.Finally, take the above status quo of China's international factoring business development into account, and the problems, combining with advanced foreign experience, the sixth part advances proposed measures for the development of international factoring in China.