The Study Of Problems Faced In Factoring Business And Its Solutions

Factoring business is established on the basis of commercial credit, by factors providing customers with credit investigation, debt guarantees, credits control, financing and other package of financial services. But at present, most of the domestic factoring services are confined to the transfer of accounts receivable. In recent years, China's factoring business swift growing at nearly 45% growth rate per annum, this is partly due to the domestic economy slowdown that many enterprises choose to sale on credit to speed up the recovery of accounts receivable collecting funds and lead to the demand of factoring finance business increased dramatically; On the other hand, the government has promulgated a number of policies to promote the development of factoring business that makes it increasingly common over the years.In order to promote the development of domestic factoring business, this dissertation seriously and carefully analyzed the related problems in factoring practice. The first chapter is the introduction including the research background, research significance, creativities and literature reviews. The second chapter introduces the concept of factoring, domestic situation and development opportunities. The third chapter is the highlight, emphasis on a detailed case to restore the most of factoring work content in practical process, including authenticity of accounts receivable and corporate investigation and evaluation, and points out actual operation problems existing in the process of commercial factoring companies. The fourth part combined with the practical problems of the current factoring industry, learn from other countries experience, the author from the perspective of factors, government, and enterprises put forward some suggestions to promote a healthy factoring business development in China, such as improvement of the factoring financing channels for the company expansion, professional factoring talent training, revising and improving the laws and accounting, and so on. In the last part, the author puts forward the prospect of the factoring industry in China.