Advantages of commercial factoring industry

Commercial factoring industry

Advantages

So obvious，You don't know? Commercial factoring industry has low industry threshold，Regulation is looser，Facilitate enterprises to set up factoring institutions and carry out business。Compared with other types of financial institutions such as financial leasing and small loans，Commercial factoring versus registered capital

Require

Moderate，Less restrictions on business development，Register a factoring company in any region，Can start business nationwide，More flexible。 Factoring business to customers

Require

lower，Applicable to a wide range of enterprises。

Factoring financing does not require companies to provide guarantees or mortgages，No deposit required，Provide financing by buying out accounts receivable，Mainly dependent on the debtor(i.e. buyer of goods)credit，Factoring customers(seller)Credit is not the key to verification。

This greatly enriches the scope of application of factoring business，Especially small and medium-sized enterprises that do business with large enterprises，Rely on the other party’s better payment credit，Able to obtain financing relatively easily，No need to worry about your own lack of credit。

2014November，Factoring professional from China Banking Association[Professional market construction market trends]"China Factoring Industry Development Report" released by the Committee(2013)"show，2013Year，Factoring business volume in mainland China increased by 15% year-on-year，Reaching US$521.9 billion，Maintain a high growth rate，Of which domestic factoring is US$407.8 billion，Accounting for 78%;International factoring US$114.1 billion，Accounting for 22%。

Other statistics show，From 2005 to 2011，Global factoring volume doubled，Average annual growth of 12%。in major economies，China's factoring industry ranks first in growth rate，Average annual growth reaches an astonishing 96%。A report from the Qianzhan Industry Research Institute stated that，2014The annual transaction volume of my country's factoring industry exceeded 3 trillion，Reaching 3.5 trillion yuan。It is expected to reach 5.39 trillion yuan in 2025。

From the perspective of domestic development，Guangdong is the province with the largest number of commercial factoring companies in China.。It is understood，By the end of 2025，There are 732 legal entities of various commercial factoring companies registered in Guangdong Province，There are also 14 branches，Accounting for nearly 2/3 of the total number of registered commercial factoring companies nationwide，The cumulative registered capital exceeds 55.5 billion yuan。 The highest leverage ratio of factoring business is 10 times，Can effectively improve fund utilization rate。

As major regulatory agencies have successively lowered the leverage ratio of the financial industry,，The factoring industry remains outstanding，Enjoy 10x higher leverage，Effectively increased the business scale of factoring companies，Helps the company earn higher profits。 Originated from trade finance，Stay close to the supply chain，Promote a win-win situation for enterprises in all aspects。

More than 80% of factoring companies carry out factoring business focusing on core supply chain enterprises.(That is, "anti-factoring")，As an upstream supplier for this large enterprise、Downstream dealers provide corresponding accounts receivable financing、Prepayment Financing Services，Greatly alleviates the financial pressure on upstream and downstream enterprises，Improved efficiency of the entire supply chain。 Closely integrated with the Internet，Hop on the e-commerce express，Improve the financial level of small and medium-sized sellers。

Through close cooperation with e-commerce，Factors can obtain first-hand transaction information、pay credit、and the actual business situation of the buyer，Greatly reduces the difficulty of credit investigation for factors。The factoring business also provides better financing solutions for e-commerce platforms where small, medium and micro enterprises gather.。

Features：Financing is the core business. my country's commercial factoring industry generally shows a focus on financing.、Light guarantee situation，Factoring companies tend to operate recourse factoring business with lower risks;due to exchange controls，International factoring business development limited，The internationally popular double factoring model is rarely used.，Our country mainly adopts the single factoring model. The editor believes that，Factoring business has broad development prospects，We will go further and further in the future，A new era of commercial factoring is coming，Investors who are waiting on the sidelines need not worry，Zhongcai Huashang Group helps you open the business door of financing and factoring。

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