International factoring is very useful to transfer credit risk, to promote cash flow, to collect debt and to reduce cost and expenses. However, International factoring system in china shows imperfection especially in gap of legal vacuum and its limit to be developed. Here I suggest a practical alternative for development of International factoring system in china as follow. First, legal environment in China for factoring system should be rearranged. Even law and contract law have relative clauses for factoring system there are many difficulty to be applied. It is necessary to prepare legal ground for factoring system. Second, without recourse for International factoring system should be fixed. Without recourse is the essential point for factoring system in international trade. In fact chinese factors are partially applied only for those big global companies. However International factoring system is especially useful for small-medium companies lacked of a good credit rating. It is necessary to promote special factors by combining financial organizations as it does in developed countries. Third, they need to make legal ground to prohibit unlicensed factoring companies. Forth, they need to educate usefulness of factoring system. The settlement system in China is to be developed by systematic researches and promotion for International factoring system.