Abstract: Commercial Enterprises often face the difficulties of cash flow that a lot of trade receivables caused. With the development of our countrys economy and constant improvement of the legal system, the commercial credit is more and more popular. Using the receivable to finance, especially the factoring is an international solution to the problem of cash flow, and is the important innovations of the management ideas and methods of receivables. Factoring is a financial transaction whereby a business sells its accounts receivable to a third party at a discount in exchange for immediate money with which to finance continued business. Factoring financing can help enterprises improve their financial situation, increase liquidity, avoid the risk, and change passive pressure for the initiative. Factoring financing is a new approach of corporate finance.