Summary of commercial factoring establishment conditions

1 Gangxintong - is a domestic company that provides Internet financial company registration in the Shanghai Free Trade Zone and Shenzhen Qianhai Special Zone、Financial leasing company registration and filing、Private equity fund manager registration and filing，Cross-border e-commerce company registration and commercial factoring registration and operation overall solution service provider,Welcome to call us!

What is commercial factoring? Simply put, it means that the seller sells the goods to the buyer，The seller may assign receivables arising from sales or contracts in the course of trade to the factoring company，The factor then provides the seller with cash flow for purchase in advance.、Production etc.，In order to avoid the problem of corporate capital turnover during the period from the occurrence of receivables to the collection of receivables。

One of the major features of Internet companies is financing，This makes commercial factoring business very popular，Especially for small and medium-sized enterprises，Commercial factoring business solves their various financing needs。As a result, many commercial factoring companies have been established，So what are the application conditions and business scope for registration of a commercial factoring company?

Declaration conditions for registration of commercial factoring companies and conditions for declaration of business scope. To establish a domestic-funded commercial factoring company, the following conditions must be met:：

1. Investors in commercial factoring companies should have the appropriate asset size and financial strength to carry out factoring business，No recent violation or penalty record；The main investor should be a corporate legal person or other social and economic organization familiar with the relevant industry，And the total assets in the year before application are not less than 50 million yuan；
2. Commercial factoring companies should be established in the form of limited liability companies。

Registered capital shall not be less than RMB 50 million，All are paid-in monetary capital，One-time payment in full，And the source is authentic and legal；(3) When applying for establishment of a commercial factoring company，There should be more than 2 senior managers with more than 3 years of management experience in the financial field and no bad credit records。

Senior managers refer to managers who hold the position of deputy general manager or above or equivalent positions；

1. Commercial factoring companies are not allowed to operate mixed businesses；
2. Commercial factoring companies should have a complete internal control system，including but not limited to risk assessment、business process operations、Monitoring and other systems；
3. Other conditions stipulated by laws and regulations。

Business scope：A commercial factoring company may assign receivables that have been or will be incurred from a contract for the sale of goods or services entered into between the supplier and the buyer.，Provide suppliers with all or part of the following services:：

1. trade finance；
2. Collection and settlement of accounts receivable、Management and collection；
3. Sales account management；
4. Credit risk insurance related to the Company’s commercial factoring business；
5. Credit investigation and evaluation；
6. Related consulting services；
7. Other businesses permitted by laws and regulations。

Not allowed to engage in the following activities：

1. Taking deposits；
2. Issue payment for goods or be entrusted to issue payment for goods；
3. Specialize in or be entrusted to carry out collection business unrelated to the company's commercial factoring business；
4. fiduciary investment；
5. Other activities prohibited by national laws and regulations。Commercial factoring business is still a new form in China.，Its business model is also much more convenient than traditional methods.，occupy more of the future social and economic development

Advantages

！

The business operation process is as follows：

1. The seller sells goods to the buyer on credit；
2. The seller provides the settlement documents under the credit sales model to the factoring company，As the basis for the transfer of receivables and the issuance of receivables acquisition funds，The factoring company submits a copy of the settlement document received to the partner bank，Carry out refactoring business；
3. The bank is reviewing the documents，After confirming that it is correct，Transfer the relevant financing funds to the factoring company's account；
4. The factoring company will transfer the bank financing amount received to the seller's account opened in the cooperative bank as receivable purchase payment；
5. Receivables due date，The buyer repays the receivable claim to the factoring company。

Our company provides Qianhai company registration，Register a financial leasing company，Commercial factoring company registration，Internet finance company registration，Fund company registration，Register a financial services company

About Hong Kong Xintong

Hong Kong Xintong focuses onGuangdong and Hong Kong license plates、Shenzhen Hazardous Chemicals Business License、Shenzhen labor dispatch licenseandShenzhen Charity Foundationapplication services，Assist customers to applyShenzhen travel agency business license、Shenzhen pawn shop business license、Shenzhen auction house license and other mainstream domestic financial licenses，Support enterprises to achieve compliance expansion of cross-border financial business。Also availableODI overseas investment registration、International travel agency registration and other services，Help enterprises expand their presence in international markets。Provide one-stop compliance solutions for enterprises。To learn more，Please contactHong Kong Information Communications Consultant。