The Research On Improvement Of Domestic Factoring For P Bank

Currently, the Chinese economy appears as "New Normal" and the economic growth drops from a high-speed growth at ten percentage to a middle-speed growth at seven or eight percentage. The economic growth factors are confronted with the changes from factor-driven and investment-driven to innovation-driven. Under this environment, the companies are faced with the labor pains of industrial restructuring; several uncertain risks are explicit; the potential risks, such as financial risk gradually surfaces. In the past two years, the balance of the non-performing credit businesses increase rapidly in the banking industry; credit defective rate reached an unprecedented height. At the same time, the competition is increasingly intense in the banking industry; the product homogeneity is obvious; it is not applicable to increase the profits depend on the rate difference between saving and loan for the bank under the interest rate liberalization. Therefore, the domestic commercial banks should straighten the current products and services and pay more attention to the innovations of products and services. Based on the traditional product, the domestic commercial banks should constantly improve the innovations in the aspects of business operation conducting procedures^ product combination and products research as well as development. In order to decrease the risk and increase the competitive advantage, the commercial banks should support the high quality service.In the past several years, personalized financing solution and customized credit line became the two of the fastest growing areas in supporting the enterprise's financing for the large-sized commercial banks.Domestic factoring is a kind of traditional products for the bank. Through combining enterprise logistics and cash flow, domestic factoring is a comprehensive financial service product, which is provided to sell goods or provide service in the form of purchasing on credit in order to support trade finance?account receivable management?bad debt guarantee and any other functions. In the view of the bank, domestic factoring not only provides a new approach to conduct marketing and stabilize the high-end customers market, but also offers a channel to identify new clients through the core big client's upstream and downstream. Currently, the market potential of factoring financing is huge in the domestic. As the main intermediate of factoring business, banks gradually agree with the statement that account receivable can be used as the excellent financing supporting assets. With the help of the innovation and refinement of the development pattern as well as the risk control methods, factoring business can be developed well in a high speed. There are many research topics of factoring, but they are principally focus on the fields of the applicable law, risk control, value development and so on; few of the research topics pay attention to the actual operational process of business. Under the circumstance that the regulatory department has issued the operational standards of factoring; several topics, such as the further refined analysis and innovation improvement of practical operation become the research urgent affairs for the commercial banks.Through carding related concepts and theories of factoring, this paper adopts the method of using theory and practice, choosing P bank as the specific research object to sort out the process of its present traditional domestic factoring. Using the process of dealing with the traditional domestic factoring in P bank for S company as the reference, this paper analyzes and concludes that the current process has many shortcomings, such as, the high access standard, short financing period, miscellaneous procedure, unmanageable risk, independence of the enterprise's actual business and so on. Considering the market situation of domestic factoring and the enterprise's actual demand of dealing with domestic factoring, this author comes up with the operational project which called "financing using account receivable pool". This project can diversify, structure and mass the account receivable which is the carrier of factoring financing, through adopting the measures of process management to simplify the enterprise procedure in order to satisfy the client's demand under the condition of risk control. This paper uses the example of the company G's "financing using account receivable pool" to exemplify the detail project of "financing using account receivable pool"; and then, comparing the advantages and disadvantages between the traditional domestic factoring financing and "financing using account receivable pool" in order to show the competitive advantages of "financing using account receivable pool". The project of "financing using account receivable pool" can simplify the formalities> reduce the cost of the financing enterprise?lengthen the time-limit of financing and simplify the procedure. This project is suitable for enterprises in a variety of industry. It can further increase the customers of the bank domestic factoring and decrease the risk of credit business. This financing project is a kind of positive attempts in order to solve the problems which are met currently in the process of dealing with domestic factoring for companies and banks. In the present financial market conditions and the environment of the economic downturn, it will effectually boost the development of domestic factoring for the commercial banks. It also plays a certain reference role of innovating and developing the traditional businesses in the domestic banking industry.