Research On The Risk Control Of International Factoring In China

After the global financial crisis, international trade competition became fierce. More and more buyer are seeking for a more favorable trade payment. Open account(O/A) and accept against document(D/A) is attractive to them. Thus, international factoring as a comprehensive solution for credit trade and financing are growing fast with a trend to instead of L/C. China engaged in this business since1992, experiencing a explosive growth after2005, took the first place in the world, while some potential risk is rising up. At the end of2012, the government began to pilot commercial factor. Under this background, guiding the factor, especially the commercial factor to identify business risk has a vital significance.First, this paper present us the background of the topic, the research status at home and abroad and innovation points. Second, the paper focuse on the theory and development status, then introduce the feature of international factoring in UK and USA. Third, a comprehensive analysis on the present situation of international factoring in China is stated, as well as the obstacle factors. Forth, the paper make a detail research on the risk of international factors according to the business process and specific control measures are put forward. Finally, the macro measures to reduce the risk of international factoring industry are discussed in this paper.