Main risks and prevention of domestic factoring business of commercial banks

The domestic factoring business is a new comprehensive financial service that combines trade finance, commercial loan investigation, receivables management, and credit risk assurance. The development of the domestic factoring business brings commercial banks rich interim business income and is a new point of profit growth for commercial banks.However, since the domestic credit system is not sufficiently reliable, the policy system of the domestic factoring business is imperfect, so the development of the domestic factoring business is associated with certain risks.Carrying out internal factoring business, commercial banks should raise their risk awareness and take effective measures to ensure the smooth and healthy development of their internal factoring business.