The Problems And Legal Remedies Of Pledge Of Account Receivable

Problems of inadequate financing to ethnic minority businesses (SMEs) have been existingin our country. However, the key factor leading to financing difficulties of SMEs are collateralconstraints. From a global perspective, the ledge of account receivable have become an effectiveway to solve the financing difficulties. From the legal point, the provisions of pledge of accountreceivable in China Property Law give the safeguard to the financing guarantee and conform themainstream of times. On October1,2007, our country Property Law clearly defined the accountreceivable as the subject matter of the pledge for the first time, which giving the legal protectionto finance for SMEs.Along with the Property Law promulgated by the State Council was formulated, and ourcountry has established registration of pledge of account receivable gradually. But it later startthan other countries. Although Property Law has basically established the system of pledge ofaccount receivable, it is not perfect still. It faces more problems in the process of financing suchas no clear legal concept and overlapping registration agency and nonstandard contract. In thissituation, it not only reduces the efficiency of the established, but also improve the costs. What’smore, it causes inconvenienced to the realization of mortgage.This article is based on the state quo of pledge of account receivable in china, and explainsthe problems from three aspects: there are the subject, the system of notification and therealization of right system. What’s more, the chapter examines that legislative situation inforeign countries. It focuses on the problems of our country system and puts forwardcorresponding solutions through comparative analysis and cases cited.