Research On The Influential Factors Of Factoring Development

The accounts receivable of Chinese enterprises are huge,reaching 14.3 trillion yuan by the end of December 2018.Factoring financing,as a kind of accounts receivable financing business,can effectively activate the existing accounts receivable of enterprises,alleviate the difficult and expensive problem of financing for small and medium-sized enterprises,and help the transformation and upgrading of China's real economy.Although the factoring business in China has developed rapidly in recent years,the factoring industry in China is still in its infancy and still lags behind the developed countries in terms of development environment.Various problems in the development process restrict the development of the factoring industry in China.Under this background,how to promote the benign development of factoring industry in China has become a key problem to be solved.Therefore,identify and extract significantly influential factors in the development of factoring industry for financial institutions and commercial factoring company improve their business management,increase profits and factoring financing risk prevention aspects has important practical significance,at the same time to the relevant departments to promote the development of factoring industry policy and regulatory system also has certain reference significance.This paper firstly summarizes the types,characteristics and functions of factoring and the problems in the development of factoring in China.Then,this paper puts forward the theory of transaction cost theory,information asymmetry and incomplete law theory,the theory explains the intrinsic factors hindering the development of the factoring business,at the same time analyzed the macroeconomic development,legal environment,credit risk,credit information system,credit financing level and other factors influence on the development of the factoring industry;Secondly,based on the data from 16 developing countries and regions from 2004 to 2018,the panel model was used to analyze the factors influencing the development of factoring industry.Research results show that the macroscopic level of economic development and improve the legal environment,improve the level of credit information system,credit financing factoring industry development in developing countries and regions have a positive influence,macro-economic development level is higher,the legalenvironment more perfect,credit information system more perfect,credit financing scale of the higher as a proportion of GDP,the higher the factoring industry development level.Finally,based on the empirical results,this paper proposes specific policy Suggestions to promote the development of China's factoring industry.