Port communicationShenzhen commercial factoring license
Application conditions
Since being placed under the supervision of the China Banking and Insurance Regulatory Commission in May this year,，Subsequent applications for commercial factoring licenses will become more and more difficult，Of course, the value of license plates will also increase.。Speaking of which，So what exactly does commercial factoring do?
Next, Mr. Hong Kong Xintong will tell you about the business process of commercial factoring.，and its corresponding accounting processing： one、Factoring business concept and business scope Factoring refers to the seller、A contractual relationship between a supplier or exporter and a factor。
According to the contract，seller、The supplier or exporter assigns to the factor its current or future accounts receivable based on a contract for the sale of goods or services entered into between it and the buyer (debtor)，Trade finance provided by factors、Sales sub-account management、Collection of accounts receivable、At least two of the following services: credit risk control and bad debt guarantee services。
two、Business process model one： 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 accounts receivable and the issuance of accounts receivable 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 the purchase amount of accounts receivable；(5) Due date of accounts receivable，The buyer repays the accounts receivable claim to the factoring company。
Mode 2： 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 accounts receivable and the issuance of accounts receivable 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 the purchase amount of accounts receivable；(5) Due date of accounts receivable，The seller buys back accounts receivable from the factoring company，Repay claims on accounts receivable。
three、Business classification 1、Factoring with recourse. Factoring with recourse means that the supplier transfers the claim on the accounts receivable to the bank (i.e. the factor).，After the supplier receives payment，If the buyer refuses to pay or is unable to pay，The factor has the right to pursue claims against the supplier，
Require
Repay prepaid monetary funds。At present, the bank considers due to the principle of prudence，In order to reduce possible losses in the future，Clients are usually offered factoring with recourse。
2、Non-recourse factoring Non-recourse factoring is the opposite，The factor is solely responsible for the risk of the buyer refusing to pay or being unable to pay.。After the supplier conducts factoring business with the factor, it is equivalent to transferring all risks to the bank.。Because the risk is too great，Banks generally do not accept。 3、Explicit factoring Explicit factoring means that the supplier should immediately inform the buyer of the factoring situation when the creditor's rights are transferred.，and instruct the buyer to pay the purchase price directly to the factor。
4、Dark factoring Dark factoring excludes buyers from the factoring business，Factoring is conducted separately by banks and suppliers，The supplier will come forward to collect the payment after it is due.，After taking it back, it will be handed over to the factoring agency.。Suppliers can conceal their poor financial status by conducting secret factoring。
(It should be noted that，There are clear provisions in our country’s Contract Law，When a supplier transfers its own accounts receivable，Must be stipulated in the purchase and sale contract，and must notify the buyer。
） 5、Discount factoring Discount factoring is also called financing factoring，is when the exporter hands over a note representing the receivable to the factor，The factor immediately provides financing to the exporter in the form of advance payment for no more than 80% of the accounts receivable.，The remaining 20% of accounts receivable will be left after the factor collects the full payment from the debtor (importer)，liquidation again。This is a relatively typical factoring method。
6、Maturity factoring Maturity factoring means that the factor will、Documents such as sales invoices representing accounts receivable do not provide financing to the exporter，But after the document expires，Pay payment to exporter。No matter whether the payment can be received by then，Factors must pay for goods。Four、Account setting and accounting method 1、Accounting method：Prefer real interest rate，Calculate based on amortized cost。
2、Account settings：cash on hand、bank deposit、accounts receivable、Other receivables、Factoring receivables (account code 1124，underlying costs、interest adjustment、Overdue factoring payment)、interest receivable、fixed assets、Factoring payable、Employee compensation payable、taxes payable、interest payable、Other payables、Paid-in capital、capital reserve、Surplus reserve、undistributed profit、Main business income、Other business income、Main business costs、Other business costs、Business taxes and surcharges、Sale
cost
、manage
cost
、Asset impairment loss、investment income、Non-operating income、Non-operating expenses、income tax
cost
wait。
five、Account processing for different businesses 1、Accounting treatment of factoring with recourse (1) Initial measurement：When the factor accepts the factoring of the accounts receivable voucher provided by the supplier，borrow：Factoring receivables – cost (book value of factored receivables (considered))，loan：cash、Bank deposits (monetary funds to pay suppliers)、loan：Factoring receivables—interest adjustments。(2) Subsequent measurement：Holding period，Use real interest rate，Measured at amortized cost。
interest accrual date，borrow：interest receivable、loan：investment income、And adjust the "Factoring Receivables - Interest Adjustment" account。(3) Disposal：When the factor collects monetary funds from the buyer for the factoring receivable，borrow：cash、Bank deposit (recovering the buyer’s monetary funds)，loan：Factoring receivables—cost (book value of factored receivables)，And the account "Factoring Receivable - Interest Adjustment" will be carried forward to zero.。
(4) Refactoring：The factor transfers the factoring receivable to a third party，borrow：Cash/Bank Deposits/Accounts Receivable，loan：Factoring receivables，The difference is included in investment income。
2、Non-recourse factoring accounting treatment (1) Initial measurement：When the factor accepts the accounts receivable voucher provided by the supplier for factoring，borrow：Factoring receivables—cost (book value of factored receivables)，loan：cash、Bank deposits (monetary funds paid to suppliers)、loan：Factoring receivables—interest adjustments。(2) Subsequent measurement：Holding period，Use real interest rate，Measured at amortized cost。
interest accrual date，borrow：interest receivable、loan：investment income、And adjust the "Factoring Receivables - Interest Adjustment" account。(3) Disposal：When the factor collects monetary funds from the buyer for the factoring receivable，borrow：cash、Bank deposit (recovering the buyer’s monetary funds)，loan：Factoring receivables—cost (book value of factored receivables)，And the account "Factoring Receivable - Interest Adjustment" will be carried forward to zero.。
(4) If the buyer refuses to pay or is unable to pay，The factor waives its right of recourse against the supplier，The factor assumes the risk that the buyer refuses to pay or is unable to pay.。Dealing with property losses of factoring receivables，borrow： Non-operating expenses—factoring receivables、borrow：Factoring receivables—interest adjustments，loan：Factoring receivables—cost。
3、Discount factoring account processing (1) When the factor accepts the supplier's accounts receivable voucher and pays the supplier monetary funds at 80%，borrow：Factoring accounts receivable - cost (book value of factoring accounts receivable × 80%)，loan：cash、Bank deposit (pay the supplier 80% in cash)、loan：Factoring receivables—interest adjustments。
About Hong Kong Xintong
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