FCI has formulated GRIF, the legal basis under which nearly all international factoring transactions are conducted. FCI members also use a safe and secure communication system called edifactoring.com.
Today, FCI has 48 members in China, accounting for nearly 13% of total membership. Chinese banks and commercial factoring companies began to pay attention to big data, Fintech and Blockchain, and have refocused on rising supply chain finance and reverse factoring demand. Over the past 52 years since its founding, FCI has marched forward together with its members amid challenges and opportunities, and made concerted efforts to push press? ahead with the development of factoring. Currently, FCI now has 383 members from 94 countries and regions.
The outbreak of COVID-19 led to worldwide market fluctuations and caused a huge impact on the world economy. Affected by multiple factors, including demand, supply and capital chain, all business entities came under heavy pressure and some of them were even facing shutdown risks. Under such a climate, FCI called on its entire global membership, to jointly and continuously render factoring services during the pandemic.
Our factoring team is taking every measure possible to ensure safe and effective operations and to maintain our high service standards. We are continuously available by email, telephone and wechat to meet the customer’s demands, solve their problems in a timely manner, and perform our duties. During this special time, overseas import factors also gave us strong support, including sufficient credit, the verification of the importers' business operation and the authenticity of receivables.
As a major international trade financing method, factoring has distinctive advantages in mitigating the receivables risks during the crisis. Under the Two-Factor export factoring system, CEB provides financing facilities through payment in advance, to relieve the problem of the exporter’ working capital tied up in accounts receivable, and to improve cash flow of the exporter. Through a global network of factors, the import factor appraises the credit risk and sets a credit line for the importer. The exporter can be guaranteed by CEB of 100% credit protection against bad debts and customer insolvency. Through factoring, the exporter can provide his new or existing customers with more competitive O/A payment terms, thus expanding the overseas markets and increasing business turnover. As a sustainable, crisis-proof and flexible financial tool, factoring ensures liquidity, security and collection service for our SMEs and corporate clients during the pandemic.
During the opening-up process, factoring entered China in the late 1980s, and gradually developed into a well-established industry. In 2002, CEB joined FCI, becoming one of FCI’s first Chinese members, and taking the lead in international factoring among the Chinese peers.
Today, FCI has 48 members in China, accounting for nearly 13% of total membership. Chinese banks and commercial factoring companies began to pay attention to big data, Fintech and Blockchain, and have refocused on rising supply chain finance and reverse factoring demand.
FCI made investment into building FCIreverse, a new global Supply Chain Finance (SCF) platform for financing buyer-approved receivables. This unique platform solution enables FCI members to initate and participate in both local and multi-regional SCF/reverse factoring programs to increase revenues and grow assets.
For years, FCI has been made efforts to help build sustainable legal and regulatory environments to support the growth of factoring and receivables finance. Together with the Islamic Trade Finance Corporation (ITFC), FCI developed a new set of rules governing Islamic Factoring. China has promulgated the new Civic Code, which specifies Factoring Contract as an independent and typical contract, providing fundamental support for factoring industry under the legal framework.
By integrating resources and strengths in the development strategy, including tech innovation, think-tank building and talent cultivation, FCI set up special committees led by senior factoring experts in the industry. Additionally, FCI launched its education brand FCI Academy. So far, tens of thousands of students have completed the online courses & certificate programmes and have become experienced and competent factoring & receivables finance practitioners.
Driven by fin-tech innovation, FCI made active efforts to promote the application of blockchain in the factoring, and built a credit system through product and technology innovation to minimize transaction risks. In addition, FCI launched a new website, a new private domain and a new app. The new website, which is very friendly to users, highlights internet thinking with simple pages, refined information and extensive functions. Consistent with the style of the website, the new FCI app allows users to seamlessly switch between different devices.
As global emerging economies and international trade continue developing, factoring has featured more prominently in the emerging markets. Over the past three years, two thirds of the new FCI members came from the emerging economies, including Philippines, Bangladesh and Cambodia. Factoring has taken root and burgeoned in more emerging markets.
It is hoped that factoring and cross-border cooperation shall be an unstoppable trend into every corner of the world. Nowadays, only those who can adapt to new environments and adopt new market rules can survive, and succeed.
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