The International Factoring Business

Since 80s of 20th century, trade competition has become harder in company with the completion of setup of the buyers' market in the world and the rapid development of the telematics and mechanics of communication. Payment terms are considered to be a more and more important competitive means and the sellers have to take more flexible settlements to strengthen their competitive ability. On account sale(O/A) and document against acceptance(D/A) are the most attractive and favorable trading settlements to the buyers while as result the sellers shall take serious risks in consequential receivables and bad debts. Factoring offers the sellers necessary financial service and risk countermeasure and it takes more and more important role in the trade as a effective financing and settlement mean and the rapid worldwide development of the factoring will certainly affect China. This text, due to the domestic payment particularity, shall be only involved in the research of international factoring.This text is to find out the problems existing in international factoring in our country and the solutions to the problems through analyzing the present factoring situation in our country: policy leading, cooperation with insurance company, using for reference other country's experience and boosting up risk consciousness. This text is researching the credit risks, legal traps and their solutions in the international factoring business in our country to draw a comparably systematic and scientific conclusion to the international factoring in a hope to offer profitable reference to the sections and organizations engaged in relating business.Four ideas are given in this text to the factors for how to prevent credit risks in international factoring: Strictly investigating credit status of the concerned parties, strictly censoring the agreements relating factoring, competing factoring legal systems, improving and perfecting commercial credit circumstance quality in our country; Five ideas are give in this text for how to prevent legal risks existing inbusiness operation: customers identification, business recognizing, suppliers' promises, buyers' buyback responsibility, factors' reverse.This text consists of six parts. In the first introduction part, this text is introduced on the subject of this text background and purpose of the research and content and method as well as routine of research. In the second part, full and complete introduction...