1. Factoring involves three parties: the creditor, the debtor and the factor. The factoring contract is signed by the creditor and the factor, which stipulates that the existing or future accounts receivable will be transferred to the factor, and the factor will provide financing, management and collection of accounts receivable, payment guarantee and other services for the debtor of accounts receivable. Before the adoption of the Civil Code, many courts considered the factoring contract invalid because of the uncertainty of accounts receivable, or handled it according to the loan relationship. At this time, the law clearly stipulates that in the factoring contract, it is legal to take part of accounts receivable as the subject of the transfer of creditor's rights.

Two, this involves the legal relationship between the transfer of creditor's rights, but also involves the legal relationship between the creditor (assignor) and the factor (assignee). The content of factoring contract includes the assignment of creditor's rights, but it does not necessarily lead to the legal effect of creditor's rights assignment. Factoring contract and assignment of creditor's rights are burden behavior and disposition behavior respectively. The disciplinary action requires that the object of disciplinary action be specific and clear. Burden behavior means that creditors have the obligation to assign the creditor's rights of accounts receivable to the factor. In practice, after the factoring contract is signed, both parties will sign a confirmation letter of accounts receivable to clarify the specific scope of accounts receivable. As a clause of the factoring contract or as an annex to the factoring contract, the legal effect of the transfer of creditor's rights can only occur after signing the confirmation letter.