Factoring is a full-name guarantee agent, also known as collection guarantee. The seller transfers its current or future accounts receivable based on the goods sales/service contract with the buyer to the factor (a financial institution providing factoring services), and the factor provides it with a series of comprehensive financial services such as financing, buyer's credit evaluation, sales account management, credit risk guarantee and account collection. It is a method that the seller entrusts a third party (the factor) to manage accounts receivable in order to strengthen the management of accounts receivable and enhance liquidity when the payment is settled by collection or credit in commercial trade.

so, in essence, it is an account receivable transfer product. Belong to creditor's rights