A trust is to entrust your money to someone to help you manage your finances and increase the value; factoring is to collect money when you sell something, and factoring companies provide several services.

Commercial factoring means that the supplier transfers the accounts receivable based on the goods sales/service contract entered into with the buyer to the factor, and the factor provides the account receivable. Trade financing tools for comprehensive financial services such as financing, accounts receivable management and collection, and credit risk management.

The essence of commercial factoring is that the supplier converts the credit of the core enterprise (i.e. the buyer) into its own credit based on commercial transactions to achieve accounts receivable financing.

At present, bank factoring focuses more on financing. When handling business, banks still need to strictly examine the credit status of the seller, and need to have sufficient mortgage support and occupy their credit line with the bank. Therefore, banks Factoring is more suitable for large enterprises with sufficient mortgage and risk tolerance. Small and medium-sized commercial enterprises usually cannot meet the standards of banks.

Commercial factoring institutions, on the other hand, pay more attention to providing a series of comprehensive services such as investigation, collection, management, settlement, financing, guarantee, etc. They focus more on a certain industry or field and provide more targeted services; It pays more attention to the quality of accounts receivable, buyer's reputation, goods quality, etc. rather than the seller's qualifications, and is achieving the complete transfer of unsecured and bad debt risks.

Therefore, if the creditor's rights are transferred to the factoring company through commercial factoring, the accounts can be revitalized and the efficiency of its cash flow can be improved. Some data show that the average profit level of companies that use factoring is more than 10% higher than that of companies that do not use factoring.

A trust is when the trustor entrusts his property rights to the trustee based on his trust in the trustee, and the trustee manages it in his own name according to the wishes of the trustor for the benefit of the beneficiary or for a specific purpose. and disciplinary actions.

Trust is a financial management method, a special property management system and legal behavior, and it is also a financial system. Trusts, banks, insurance, and securities together constitute the modern financial system.

Trust business is a legal act based on credit, which generally involves three parties, namely the trustor who invests credit, the trustee who is trusted by others, and the beneficiary who benefits from others.