| Summary: | 碩士 === 國立中央大學 === 產業經濟研究所碩士在職專班 === 99 === As the letter of credit usage reduces year by year, more and more transactions using O/A or T/T methods, this offers factoring business a good development opportunity. As international trade is competing fiercely, it brings new risk to the seller because of the terms of the transaction: the seller usually needs to provide the buyer transaction terms with credit and long payment term, and the payment term is longer as the buyer is better. The risk of the seller will be increasing as the payment term is long, the seller will face the problem of capital turnover. Factoring business provides four main functions: working capital financing, credit risk protection, accounts receivable bookkeeping and collection service. Factoring business can help the seller solve these kinds of problems.
The trend of factoring business in the world is towards growing, and this business has developed rapidly in Taiwan in recent years. There are 18 financial institutions joining FCI in Taiwan, and we expect there will be more institutions joining the area of factoring business.
This research uses the statistics of EDIFACTORING and the real GDP data of import countries and Taiwan to investigate the factors and degrees of affecting Taiwan’s export factoring business in 2 factor model by applying OLS and fixed effect model. The results display that in addition to the boom, the more the choice and the better quality of the service that the FCI members provide will be positive effects on Taiwan’s export factoring business.
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