Chinese Medium-sized and Small Enterprises' Dilemma in International Factoring and the Law Solution for That

International factoring is a new instrument of settlement in international trade.Chinese medium-sized and small enterprises can get more financing and reduce the risk of loan recovery by using it.It is of great significance for the development of Chinese SMEs in international trade.But problems with the law system and the environment hindered the SMEs from developing international factoring.To solve this problem,we should not only encourage the SMEs,but also search for answers for that in terms of the improvement of the law system,the establishment of the law system for credit management,the understanding of international factoring,the standardization of charges of international factoring and the establishment of risk sharing system of commercial banks.