China commercial factoring: current situation, challenges and policy recommendations

In recent years, China's commercial factoring business model continues to innovate, the scale of commercial factoring business continues to expand, effectively alleviating the difficult and expensive problems of financing enterprises.However, the development of China's commercial factoring business also faces inconsistency in current legislation, heterogeneity of regulatory rules, a relatively high level of tax burden, dispersion and concentration of factoring risk, and weak management ability of factoring companies, difficulties in financing factoring companies and other problems.It is proposed to clarify the positioning of financial institutions of factoring companies, improve the mechanism for distributing factoring risks and strengthen the building of self-discipline in the factoring industry in order to promote the development of commercial factoring business in China.