Business scope of factoring company: Factoring business is a comprehensive financial service integrating trade financing, business credit investigation, accounts receivable management and credit risk taking.
An insurance company refers to a company as a legal person established in accordance with the Insurance Law and the Company Law. Insurance companies collect premiums, invest the premium capital in bonds, stocks, loans and other assets, and use the income of these assets to pay the insurance compensation determined in the policy.
Through the above business, insurance companies can get high return on investment, provide customers with appropriate insurance services at lower premiums, and make profits.
An insurance company is an insurer in the form of company organization, which deals in insurance business. The insurer in the insurance relationship has the right to collect insurance premiums and establish insurance premium funds. At the same time, in the event of an insured accident, it is obliged to compensate the insured for economic losses.
Insurance companies are companies that sell insurance contracts and provide risk protection. An insurance company refers to an economic organization that operates the insurance industry. Insurance companies refer to commercial insurance companies established with the approval of China Insurance Regulatory Authority and registered according to law, including direct insurance companies and reinsurance companies.
Stock insurance company
Similar to joint-stock companies in other industries, joint-stock insurance companies are established by sponsors according to the company law, which stipulates the number of sponsors, the company's debt limit, the types of shares to be issued, taxes, business scope, company power, application procedures, company license, etc. Company organizations in western developed countries are composed of three power groups, namely shareholders, board of directors and senior managers.
mutual insurance company
Mutual insurance company is also a form of company organization, but it is a non-profit company with no shareholders, and the company is owned by the insured. Therefore, the insured has a dual identity, both as the owner and the customer of the company. Shareholders of joint-stock insurance companies are not necessarily customers of the company. As the owner, the insured of the mutual company can participate in the election of the board of directors, and the board of directors appoints the senior management personnel of the company to specialize in the business operation and management of the company. The insured can share the operating results in the form of "dividends".
Exclusive insurance company
Insurance companies established by industrial and commercial enterprises to provide risk insurance or reinsurance for their own enterprises, affiliated enterprises and other affiliated enterprises.
Precautions for factoring companies:
1. The buyer (importer) must have a good reputation or credit so that the import factor can verify a certain credit limit for it, otherwise it will not be accepted.
2. Before continuing the factoring business, before signing the export contract formally, we should do a lot of work such as application, credit evaluation and credit line verification.
3. Only after the export factor and the exporter have agreed to handle the factoring business, that is, the export factor has approved the credit line for the importer, can the foreign trade contract be formally signed or the goods be shipped.
4. Pay attention to the usage of the importer's credit line (balance status) and the changes of its credit status. Always keep effective communication with export agents.