International Factoring: A New Financing Instrument for Small and Medium-sized Foreign Enterprises

Due to the fierce global competition, the recent years' international trade has seen a growing proportion in non-credit settlement. Under such changing situation, a comprehensive financing service—international factoring, which is designed mainly for credit or account sales-has found its fast-growing footing in various countries, for it can help the enterprises to control the risk in trade financing. The paper, through an analysis of the features of the service, points out that this service is especially suitable for the small and medium-sized foreign companies. Besides, some suggestions are advanced for making effective use of the service.