The Forfeiting Related Legal Issues

As a sort of patterns of export financing business, forfaiting is in primary phase of its development in our country. Comparing with other patterns of financing, the most specialty of fortaiting is that it can provide a middle-long term trade financing without recourse. For exporters, they can get a lot of advantages in financing business through forfaiting. For example, they can transfer some ventures, such as the venture of interest rate, the venture of exchange rate, the venture of credit and the venture of country, to the buyers. And the intending receivables can be changed into cash flow, then the assets liquidity ratio can be strengthened. But any mechanism arranges will not be perfect in practical operations. There are some disputations in forfaiting business , such as the validity of the assignment of receivables, the effectiveness of'without recourse clause', the force of endorse alienation, the force of independence guaranty and the legal applicability and the judiciary domination of forfaiting. At the same time, because the forfaiting business have just been started in our country and the law and rules related to it are not soundly, the rights and obligations of mutual parties are not clear, then it will occur some legal venture needlessly.This paper summarized the definition and origin of the'forfaiting', and analyzed the legal characteristics and the legal relations of the pertinent parties.The second part mainly compared the'forfaiting'with other financing means such as negotiation and factoring, and discussed the predominance of'Forfaiting'.The third part construed the problems in disputations such as the assignment of creditor's rights, without recourse and the problem about guarantee.The fourth part mainly discussed the legal obstacles in the operation of'forfaiting'business in our country and put forward the advices about the improvement of the related laws and regulations.