What is bank factoring? What is the business of bank factoring? If you want to know something about bank factoring, let's study together. What is bank factoring? What is bank factoring? 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. In practice, there are many different ways to operate factoring business. Generally, it can be divided into: factoring with recourse and recourse; Explicit factoring and implicit factoring; Discount Factoring and Maturity Factoring (I) Recourse Factoring and Non-recourse Factoring refer to the supplier transferring the creditor's rights of accounts receivable to the bank (i.e. the factor). After the supplier receives the payment, if the buyer refuses to pay or is unable to pay, the factor has the right to recover from the supplier and demand repayment of the prepaid monetary funds. At present, due to the principle of prudence, in order to reduce possible losses in the future, banks usually provide customers with factoring with recourse. On the other hand, non-recourse factoring is the risk that the buyer refuses to pay or is unable to pay. After the supplier and the factor carry out the factoring business, it is equivalent to transferring all the risks to the bank. Because the risk is too high, banks generally don't accept it. (2) Distinguish between factoring and covert factoring according to whether the factoring business informs the buyer. Explicit factoring means that the supplier should immediately inform the buyer of the factoring situation when the creditor's rights are transferred, and instruct the buyer to pay the goods directly to the factor. Implicit factoring is to exclude the buyer from the factoring business, and the bank and the supplier conduct factoring business separately. After the expiration, the supplier will come forward to ask for payment and then hand it over to the factor. Suppliers can cover up their poor financial situation through secret agents. (3) Discount factoring and maturity factoring, also known as financing factoring, mean that when the exporter hands over the bills representing the accounts receivable to the factor, the factor immediately provides the exporter with prepaid financing that does not exceed 80% of the accounts receivable, and the remaining 20% of the accounts receivable will be settled after the factor collects all the payment from the debtor (importer). This is a typical factoring method. Maturity factoring means that the factor does not provide financing to the exporter when receiving the documents submitted by the exporter (such as sales invoices representing accounts receivable), but pays the payment to the exporter after the documents expire. Whether or not payment can be received at that time, the factor must pay the money. What is factoring? Problem: Don't copy and paste. Can you explain the definition of factoring in a popular way? At present, I only know that it is related to accounts receivable. I don't know where the bank's profit point is. What's the difference between this and guarantee, mortgage guarantee and so on? What is bank factoring? Related comments: Factoring refers to an enterprise transferring the creditor's rights of accounts receivable arising from the sales contract between the enterprise and the customer (buyer) to the bank, which provides the buyer with comprehensive financial services such as credit risk guarantee, financing, account management and accounts receivable collection service. As a product of trade financing, factoring is flexible, efficient and professional, which can solve the problems of financing difficulties and weak risk management ability of small and medium-sized enterprises. For enterprises, through factoring, their accounts receivable can be converted into cash in advance, and financing can be obtained from banks in advance after delivery. Within the amount approved by the factor, they can apply for prepayment financing with the maximum invoice amount of 80%, and timely convert accounts receivable into cash, thus improving the efficiency of capital utilization. At the same time, enterprises can also avoid the buyer's payment risk through factoring. After the bank provides the buyer's credit risk guarantee for the enterprise's accounts receivable, if the buyer cannot pay due to credit factors, the bank will perform the payment, and the creditor's rights can be guaranteed 100%. For banks, factoring can make them get more income. As an intermediary service, factoring can get higher service commission. The factoring fee can be charged individually or in combination according to the buyer's credit risk guarantee, collection, credit review and financing provided by the enterprise, which is generally 0.5% ~ 2% of the invoice amount, and financing interest is also charged when financing. Internet hot search word: bank factoring? The factoring business of Shanghai Pudong Development Bank includes bank factoring, industrial and commercial bank factoring and bank factoring.