At present, bank factoring pays more attention to financing, and banks still need to strictly examine the seller's credit status when handling business, and need sufficient mortgage support to occupy its credit line in the bank. Therefore, bank factoring is more suitable for large enterprises with sufficient mortgage and risk tolerance, and small and medium-sized commercial enterprises usually fail to meet the standards of banks. Commercial factoring institutions pay more attention to providing a series of comprehensive services such as investigation, collection, management, settlement, financing and guarantee, and focus on a certain industry or field to provide more targeted services; Pay more attention to the quality of accounts receivable, the buyer's reputation and the quality of goods. , rather than the qualification of the seller, is realizing the complete transfer of unsecured and bad debt risks. Therefore, if the creditor's rights are transferred to the factoring company in the form of commercial factoring, the accounts can be revitalized and the efficiency of cash flow can be improved. Statistics show that the average profit level of enterprises that use factoring is higher than that of enterprises that do not use factoring by more than 10%.
The factoring business of banks can be divided into domestic factoring business and foreign factoring business.
The popular point of domestic factoring business will also be called accounts receivable financing, that is, after the company passes the bank's audit, it transfers your accounts receivable to the bank and obtains funds in advance. According to different types, it can be divided into buyout factoring and repurchase factoring. The audit point of factoring bank is mainly to audit the repayment ability of the debtor (that is, the company that owes money to the company).
Foreign factoring business is mainly a financial product designed according to the import and export business of import and export enterprises, and its main function is to let import and export enterprises obtain funds in advance. Specific products include packaged loans, invoice discounts and so on.
Commercial factoring refers to a trade financing tool in which the supplier transfers the accounts receivable generated from the goods sales/service contract signed with the buyer to the factor, and the factor provides them with comprehensive financial services such as accounts receivable financing, accounts receivable management and collection, and credit risk management. The essence of commercial factoring is that the supplier converts the credit of the core enterprise (that is, the buyer) into his own credit based on commercial transactions to realize the financing of accounts receivable.