Core Viewpoint - The recent restrictions on the exit of a senior executive from Wells Fargo, who is also the president of the International Factoring Association, have brought international factoring business into the spotlight, raising various speculations in the market [1]. Group 1: Role and Operation of International Factoring - International factoring serves a similar function to domestic factoring, primarily aiding export enterprises by accelerating cash flow and mitigating buyer default risks, although it involves more complex details due to cross-border transactions [2]. - The application of digital platforms in cross-border supply chain finance is still challenging, with the current international factoring business being less digitized and primarily relying on traditional accounts receivable financing [2]. - Export factoring, also known as forward factoring, helps exporters accelerate cash flow and avoid certain buyer default risks, especially as the use of letters of credit declines in favor of open account sales [4][5]. Group 2: Types and Benefits of Export Factoring - Export factoring can be categorized into recourse and non-recourse factoring, with non-recourse factoring being widely used, allowing exporters to transfer both payment terms and risks [5][8]. - Non-recourse factoring provides several benefits, including financing up to 95% of invoice value within 24-48 hours, credit protection, and collection services [5]. - The risk of non-recourse factoring is higher for banks or factoring companies, as they bear the risk of bad debts when the importer fails to pay [8]. Group 3: Risks and Challenges in Factoring - Exporters are not entirely free from risks in non-recourse factoring; issues like fraudulent transactions or commercial disputes can lead to the invalidation of non-recourse agreements [11]. - The potential for fraudulent activities exists, but strict due diligence by factoring companies makes it difficult to execute such schemes [12]. - The complexity of cross-border transactions and varying legal frameworks across countries complicates the implementation of digital solutions for international factoring [16][17]. Group 4: Regulatory Environment and Market Speculations - Current market speculations suggest that some may attempt to exploit regulatory loopholes for foreign exchange control through factoring, but stringent KYC requirements and operational limitations make this challenging [18].