Factoring 'can help improve risk control'

Factoring has become increasingly popular among online lenders as a tool to improve risk control, experts said.

Factoring is a financial transaction in which a business sells its accounts receivable to a third party (a factor) at a discount. The business is in its infancy in about 10 pilot cities in China.

Zhongli360.com, an Internet lending company that combines factoring business and Internet finance, has just been set up.