The Study On The Legal Issues Concerning The Accounts Receivable Under The International Factoring

With the development of the modes of transportation, and means of communication, modern science and technology, international trade also grows rapidly, and the international competition under the international trade isalsobecoming more and more intense. As the buyer’s market is becoming more and more important for the global economy, buyersmayhave more advantages overtheinternational trade negotiations with suppliers. Because more and more buyers are tending to choose the settlement of commercial credit in their contracts, such as credit sale, documents against acceptance, therefore suppliers are required to pay attention to their clients’ settlement demands in order to have more clients and more global market shares, on the other hand they are also required to consider and solve their own problems under the settlement of commercial credit, such as financing pressure, the heavy work of collecting and managingaccounts receivable and the credit risks arising from buyers. International factoring as a new method of international tradesettlement, could help to solve these above mentioned problems, and based on it, international factoring business around the world in recent yearshas also been developed rapidly. Not only the volume of international trade of our country tops the global rankings, but there are also lots ofenterprisesin China carrying on the importing or exporting business, also involvingmany workers, and international trade has an important influence on the economic growth of our country. The huge international trade volume in our country provides a good environment for the growth of international factoring. However, because of being subject to issues on the legal system and factors’ internal control system over the accounts receivable transferring matter under international factoring, compared with other countries also having a high volume of international trade, international factoring business in our country is still underdeveloped and required to be developed. International factoring is not fully being used to promoting China’s international trade development and its economic growth.Given that the issues on the legal system over legally transferringthe accounts receivable under international factoring business in our country, this paper will mainly focus on the parts of legal accounts receivable and its legally transferring under the international factoring business. Furthermore this paper will also be based onthe analysis of the basic development history of receivables transferring under the international factoring, and explaining the scope of the accounts receivables, and the issue of receivables’ legality will be come up with. And legal requirements and legal effect of accounts receivable being transferred are being analyzed.Thenthe legal risks and its respective suggestion of account receivable transferring are also taken into consideration.The issues with regard to the receivables’ legality and transferring requirements of its legally transferring in our country have been come up with, with reference to the requirements over the receivable’s legality and its legally transferring from the international legislation and some countries’ perspective,finallysuggestions have been given in this regard. There are four parts contained in this paper totally, including:(1) the first chapter is about the accounts receivables’ legality, the history of accounts receivables’ transferring is discussed firstly, and also explained the scope of accounts receivable under factoring business, based on the foregoing, the legality issues of accounts receivable are come up with;(2) the second chapter is mainly about the legal nature and requirements and legal effect on accounts receivables’ legally transferring under international factoring business, the foregoing legal nature issue have been come up with firstly and the legal nature has also been analyzed, and then the issues on its legally transferringrequirements and legal effects alsohavebeen discussed in this part;(3) the chapter 3 are about the potential legal risksarising from the accounts receivable’s transferring and its respective suggestions on prevention of these risks mentioned;(4) in the final chapter(i.e. Chapter 5), attention will be paid to the issues of the legislation with regard to account receivables’ legally transferring under the factoring business in our country, and these proposals with regard to the legislation issues are based on the above introduction and analysis on the accounts receivables’ legally transferring under international factoring.Pursuant to the analysis of the mentioned four parts hereof, we understand that, even though the factoring sector(including bank factoring and commercial factoring) in our country faces unreasonable and missing issues on accounts receivable transferring requirements, however the risks arising from these issues still could be controlled, and with the improvement of accounts receivable requirements under factoring sector, it’s promising to see the stable and quick growth of factoring business in our country.