International Factoring, also known as Factoring Agency business, refers to a kind of comprehensive financial service in which the factoring agent purchases the accounts receivable of exporters and provides them with a series of services which includes financing, importer credit assessment, sales account management, credit risk protection, account collection and so on. To be specific, the process of international factoring starts after an exporter sells goods on the payment term of open account (O/A). The exporter signs an agreement with local export factor which requests the import factor to make credit investigation of the importer and confirm the importer’s reliability, and then approves a credit limit for the exporter. Only bad Debts within the credit limit are responsible by import factor, otherwise the exporter shall take charge of the extra amount by itself. After shipping the goods, the exporter will directly collect 80% to 90% of the payment for goods from the export factor by submitting shipping documents and the importer's factoring agency is responsible for collecting the payment from the importer to transfer it to the exporter's factoring agency accordingly. In essence, factoring is a discount of accounts receivable provided by export factoring under the credit guarantee of import factoring. At present, with the shaping up of international buyer market, increasingly fierce trade competition and diversified development of international trade settlement method, international factoring caters to the current development of international trade due to its unique advantages and has been widely recognized and applied all over the world.