Brief analysis of the operating mode and risk control of commercial factoring in China

Credit sale has become the mainstream mode of operation for small and medium-sized enterprises in today's society in China, which leads to the shortage of enterprise funds, coupled with financing difficulties, financing expensive and other problems seriously restrict the development of enterprises. Commercial factoring provides an effective way to solve the financing problems of small and medium-sized enterprises. Commercial factoring has been more mature in the world, and also experienced the stage from exploration to stable development in China. The business organization has developed from commercial factoring company to supply chain financial company and other institutions.The mode and service content of commercial factoring are constantly enriched and expanded. The core enterprises, upstream and downstream enterprises, third-party logistics enterprises and factoring companies in the factoring business participate in the main body cooperation, providing the basis and scenario for the development of commercial factoring. This paper analyzes the operation mode of China's commercial factoring, discusses its internal risks, and on this basis puts forward relevant risk control suggestions.