How to apply for a commercial factoring company

How to apply for a commercial factoring company Hong Kong Xintong-： The connotation of factoring、Scale and supply chain trends

1. Connotation: How to apply for a commercial factoring company. Factoring is also called "guaranteed agency"，It means that the seller transfers its current or future accounts receivable based on the goods sales contract entered into between it and the buyer to the factor according to the contractual relationship.，The factor provides financing to the seller for the assigned accounts receivable、Collection、manage、Two or more specific comprehensive financial service products in guarantee services。

It is worth noting here that：Simply providing a service cannot be called factoring。 It can be seen from the above definition，Factoring business is completely built on the basis of credit trade。The essence of factoring business is a financing activity based on corporate accounts receivable，It is realized through the realization of accounts receivable，Solve the cash gap problem caused by credit sales in small and medium-sized enterprises，It is an innovation that solves the financing difficulties of small and medium-sized enterprises、*effective channels。

Minato Shindou-：

1. Scale Competition in world trade is becoming increasingly fierce、When credit sales are prevalent，Factoring business has formed unprecedented development momentum on a global scale。

Up to now，FCI（Factors Chain International,The 2014 data released by FCI (hereinafter referred to as FCI) (the 2025 data has not been disclosed yet) shows that the total amount of factoring in the world reached 30 trillion euros.，Equivalent to approximately 17.8 trillion yuan in RMB。

According to data released by FCI,，As the world's top factoring country for four consecutive years，As of 2014，The total factoring business in my country reaches 400 billion euros，Equivalent to approximately 3.12 trillion yuan in RMB。From 2 billion euros in 2002 to 400 billion euros in 2014，The total factoring business volume in China has achieved rapid growth of nearly 20 times.。

Although my country's factoring business currently has a huge volume of 3 trillion,，But this does not mean that the factoring market is saturated。According to data from the National Bureau of Statistics，As of the end of December 2025，The accounts receivable of industrial enterprises above designated size across the country is 11.4 trillion yuan。Calculated based on 90-day billing period，The amount of accounts receivable for the whole year should be 4 times the statistics on December 31，That is to say, industrial accounts receivable alone can reach a scale of 40 trillion a year.。

thus，There is still a lot of room for market development。

1. Supply chain trends before 2010，There are only a few banks in China engaged in factoring business，2010The five major state-owned banks and joint-stock banks will、City commercial banks are beginning to pay attention to the factoring market。The blowout period for commercial factoring companies，It will be traced back to after 2013。Factoring business based on trade is no longer limited to the original fields，But further expand throughout the supply chain。

two、Types of factoring and comparison with credit business

1. Types of factoring business Factoring products can be divided into different types according to different standards，There is currently no unified classification standard in the industry。

Based on whether cross-border transactions are divided into domestic factoring and international factoring；Based on the identity of the factor, it is divided into bank factoring and commercial factoring.；Factoring can be divided into factoring with recourse and factoring without recourse based on the different levels of risk borne by the factor.；Based on whether a debt notice is required, it is divided into explicit factoring and covert factoring, etc.。

These products have different classification dimensions，In actual business, there will be a certain degree of overlap，Moreover, there are certain differences in operating procedures and risk control among different types of factoring businesses.。

1. Comparison of factoring assets and credit assets Due to lack of in-depth understanding of factoring，Many people confuse factoring with credit，But there are actually big differences between the two。

first，Credit is a credit loan and factoring is a product under trade finance.；Secondly，Credit relies on the credit qualification of the enterprise, while factoring is based on accounts receivable in the context of real trade.；third，The object of credit review is credit-granting enterprises, while factoring is based on the review of buyers and sellers under real trade.；fourth，When doing due diligence, credit only needs to perform due diligence and financial analysis on the company.，However, factoring must strengthen verification of the authenticity of transactions on the basis of credit.；fifth，Repayments of credit come from the profits of the borrowing company，Factoring consists of the buyer's repayment and the seller's guaranteed repurchase to ensure the clarity of the source of repayment.。

Taken together，The risk of factoring is less than the credit risk。 three、The key points of risk control in factoring and the refinement of risk management

1. Basic understanding of factoring risk control Factoring has developed rapidly due to its characteristics of early realization of accounts receivable and promotion of resource integration between upstream and downstream enterprises in the industrial chain.，Risk control is the core of factoring business and the key to success or failure.。

Since factoring business must be based on real trade，Therefore, about 90% of the risks are commercial fraud from false contracts。In this way，Risk control based on traditional credit thinking cannot effectively confirm the real transaction.。

1. The changes that factoring business should have The particularity of factoring risk control requires factoring companies to change their thinking when doing factoring business，Mainly manifested in the following seven aspects：first，Assess corporate credit risks from a new perspective–Shift from focusing on the company's own risk assessment to assessing the entire supply chain transaction；second，Truly assess the true risks of your business，Strengthen the assessment of buyer qualifications；third，Have a clear understanding of the repayers and repurchasers–Buyer repayment、seller repo；fourth，Based on real transactions、Exemption from mortgages and guarantees under normal payment conditions；fifth，Determine the credit limit based on historical transaction records；sixth，The necessity of proactive credit extension (the buyer has no obligation to cooperate with due diligence)；seventh，Quota management should be based on the buyer、Sellers and other multi-dimensional considerations。
2. Risk characteristics of factoring assets Factoring business is formed based on the contractual transfer of accounts receivable，Therefore it is transactional financing，Post-shipment financing，secured financing，self-paying financing，and short-term financing。Under these five factoring business characteristics，The risk characteristics of factoring assets are further clarified。

Risk characteristics based on factoring assets，Factoring risk control should be based on the following four mechanisms：first，Depends on the accounts receivable balance and account period confirmation；second，Depends on transaction process and historical document review；third，Depends on the buyer's ability and willingness to pay；fourth，It depends on the seller’s repurchase ability and credit enhancement operations.。

The importance of these four mechanisms is unfolded in sequence.，This is also an important difference in mechanism from traditional credit business.–Traditional credit* focuses on seller repurchases and credit enhancement。

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