Commercial Factoring in China：The explosion is now!

Commercial Factoring in China：The explosion is now! What is factoring? Many people still don’t know how to answer this question，And some people know that factoring is not an insurance agent but a guarantee agent for accounts receivable.，Also feel whether the risk control of accounts receivable management is strict enough?，How to make money? What is the use of commercial factoring?： abroad，Especially developed European and American countries，Commercial factoring is a well-established and mature financial business.。

Just like almost every American has their own psychiatrist and dentist，Almost every U.S. business has its own lawyers and factors。 And in China，Commercial factoring itself is a big market，Nowadays, many domestic enterprises have tight capital chains.，An important reason is that many companies have too much working capital occupied by accounts receivable.，Leading to poor circulation of one's own funds。

The original intention of factoring business is to target the company's external accounts receivable.，Provide financing to businesses，It is equivalent to the company collecting accounts receivable in advance and using them at a certain cost.。

What are the characteristics of commercial factoring? ： For sellers：

1. Accounts receivable are transferred to the factor and converted into cash，Shortened payback period，Speed ​​up capital turnover，Save financial costs;
2. Offers buyers attractive payment options such as credit sales，Enhance competitiveness，Get more orders，Expand profits；
3. Risks are protected；
4. Simple procedure，The seller can ship the goods at any time according to the buyer's needs and transportation conditions.，Seize business opportunities。

The “money” scene in the commercial factoring industry cannot stop it, according to FCI (FactorsChainInternational)，Statistics from the International Federation of Factoring，Global factoring business volume is increasing year by year，The industrial and commercial service assistant will not list the data one by one. Factoring originated in Europe.，Europe is also the most mature factoring industry in the world.、The regional market with the largest business volume。

According to statistics provided by FCI，Most of the top ten countries in terms of global factoring business volume are European countries.。 In fact, since 2005，my country's commercial factoring development path has begun to develop rapidly。

Factoring，In particular, commercial factoring is the most rapidly developing sub-sector of the non-bank financial industry in recent years.，Its Gundam 10 times leverage、Abundant financing channels and strong support from national policies make it one of the best tools to leverage the blue ocean of supply chain finance.。

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