The Present Situations Of Factoring In China And Suggestions For Improvement

With the intensifying competition in international trade, a buyer’s market gradually formed, factoring, as a kind of new international trade settlement way arises at the historic moment. Factoring is a complete financial package that combines working capital financing,credit risk protection, accounts receivable bookkeeping and collection services. The rapid development of factoring business, effectively supporting and facilitating domestic and international trade, the global economic recovery has played a positive role.Despite the world economic growth in 2013 is not very optimistic, but the development of the world factoring business is quite rapid, factoring volume at an average annual growth rate of 15%. Country in the 2009 and 2013 years, factoring business volume with 54%annual growth rate over the UK as the world’s largest factoring countries. According to the official website of FCI data, 2013 factoring business volume of China reached 387.1 billion euros, domestic factoring volume of 295.4 billion euros, international factoring volume of82.6 billion euros, more than the total in 2012 rose 12.59 percent. On the one hand, the state has promulgated regulations, notices and policies to further support and promote the development of factoring business. On the other hand, as China’s deepening reform and opening up, China has become the world’s second largest economy, trade credit increases the volume of business, are factoring in the further development of our country, and provide a huge space for development.In order to better promote the factoring business development in our country, the paper issues related to factoring business to do further analysis and research. The first chapter is the introduction part of the article, including the research background, significance and research ideas. Articles second and third chapter introduces the theory of content, for the following theoretical foundation. The second section focuses mainly elaborated the theory of the factoring business, including the factoring business concepts, classifications and business processes. The third chapter introduces the factoring business of comparative advantage,which is the common international trade settlement, financing for comparison. The fourth chapter analyzes the current status of development of factoring and related issues. The last chapter is the full text of the focus, on the basis of sound analysis and summary of predecessors, from the government, factoring, enterprise three angles, suggestions for further development of our factoring business.