In abroad, factoring is well developed and widely applied on managing the account receivable. Its validities are verified on the aspects of transferring financial risk, bringing down press of account receivable and improving finance structure. Yet in China, factoring is at a fast developing stage but still with a few problems. With the imperfect credit system, enterprises in China aggregate large amount of money on the account receivable. As a new comprehensive financial service, factoring makes apparent effects on respond to account receivable risks but also the acceleration of funds operation. This essay intends to explore the problems of factoring existed in China and provide some suggestions to expand factoring business.
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