On the new situation, the problem of financing SMEs

Abstract: This paper summarizes the status of SME financing, analysis of the current financing is difficult because the current situation, the problem of financing solutions, broaden the financing channels, to be the government, enterprises, banks and intermediaries for SMEs to work together innovative mechanism for the storm.

Keywords: SME financing innovation system

SMEs in China to expand domestic demand and maintain stable economic growth, increase tax revenue, increase employment, social stability, an active market and other economic activities play a significant role, but this year, the international financial crisis, domestic economic growth up slow, small and medium large area of ​​operational difficulties, coastal areas due to rising raw material prices, rising labor costs and the appreciation of the RMB exchange rate and other factors for a large number of SMEs collapse phenomenon. to actively cope with the international financial crisis on China's negative impact, in a timely manner to develop the current efforts to expand domestic demand and promote economic growth of ten measures of fiscal policy adjustment by the sound of an active monetary policy easing by the tight adjustment of the central bank also increased the powers of protection efforts on SMEs face a relatively easy monetary policy small and medium enterprises financing difficulties and break the bottleneck to solve urgent problems.


First, the financing situation of SMEs

1 determine the characteristics of financial needs of SMEs from bank loans more difficult. Most of the initial funding requirements of SMEs is established by self-financing, enterprise Development to a certain size, to expand production, purchase of fixed assets and other family investments, the funds needed to become a bottleneck problem, because SMEs, small and not standardized, transparent financial information, lack of innovation, product homogeneity and more, not competitive, the current case, the lack of formal channels to obtain bank loans from the conditions of the SME liquidity demand characteristics: short, frequent, fast, small. is to obtain loans from banks, loan approval process cumbersome, funds have been missed opportunities, loss of short-term borrowing purposes; Furthermore, the loan risk, capital demand for small, fast frequency feature also increases the cost of bank loans and risk management, positive impact on bank lending.

(2) financing is limited, narrow channels of capital market threshold is high, the stock market is more inclined to large enterprises, SMEs in China the lack of direct financing in the capital market approach, the SME access to equity financing is very difficult corporate bond issuance by government's strict control, is difficult for SMEs to obtain bond financing eligibility, venture capital system is not perfect, the lack of comprehensive legal protection system and the policy support system.

3 The existing financial system is not conducive to the financing of SMEs. China's financial system is based on state-owned enterprises as the main object design and implementation of the Financial institutions remain the monopoly of state-owned banks to state-owned economy-oriented financial system arrangements, state-owned commercial banks and institutional asymmetries in financing SMEs. SMEs mortgage assets less opaque credit information, security and other unfavorable factors is difficult from the existing financial institutions to obtain loans, corporate
Development of key aspects to money, only from private loans, to pay double the price, increase their financial burden, restricted the Development of SMEs.


Second, the reasons for SME financing

SME financing problem, is a worldwide topic. Financing difficulties for many reasons, causes the bank credit market failure, but other national and regional governments, and even some international organizations have set up special services, small business sector to actively create conditions for small business financing to provide effective help in the process of transition to a market economy, China's bank loans are mostly concentrated in large enterprises and infrastructure projects, Emergence of a large number of SMEs to economic and social Development has an important role, but it has been the lack of accompanying financial service system.

1 SMEs own problems the SME status of their management, constraints to obtain loans directly from banks the SME management infrastructure is weak, the general lack of good corporate governance environment, the lack of own funds, asset-liability mismatch ratio, the internal management is not norms, financial systems, mortgage assets may be small in scale, transparent information, credit is not high, the business risk, profit model instability, generally low level of technology, it is difficult to adapt to changing market changes in the status quo, increased bank credit risk, limiting the probability of the bank to obtain loans directly.

2 of Development services for SMEs is not sound. At present, China's lack of effective services for small and medium organizations, such as the guarantee institutions for SMEs, SME rating agencies and financial institutions for SMEs, the existing institutions in order to guarantee their own interests, guarantee the high cost, requiring harsh conditions, it is difficult to meet. the existing commercial banks due to financial, service, project limits, apply for a loan and other restricted financing for SMEs.

3 bank credit management system limits the small business loan. SMEs to obtain bank loans, mainly to the existing conditions, the small business loan does not meet the current banking system in line with the requirements under the loans. Mortgages difficult to provide collateral less collateral discount rate, cumbersome, to bear the high charges; followed hard to find a suitable guarantor enterprises with good independent small and medium enterprises do not want to be guaranteed benefits in general corporate, bank guarantee is not allowed people, between the guarantee is nominal, the only company to provide security guarantees for SMEs, the unbearable high cost of guarantee. Furthermore primary bank limited mandate, procedures complicated procedures, long loan hand, SMEs can not meet urgent need for funds with time, frequency, fast requirements. Links to free download http://www.hi138.com Third, the new situation, how to broaden the financing channels for SMEs

1 SMEs take advantage of favorable opportunities to grow and strengthen their internal management improvement and now the global economic crisis spread to many small and medium enterprises survive and develop, but the small size of SMEs, as the saying goes: small boat U-turn, more flexible operation, is a crisis and an opportunity, survival of the fittest, Ebb Tide, the use of favorable opportunities to grow their own. to promote the restructuring of SMEs and the new generation of products. China to expand domestic demand, the role of SMEs is more apparent, increasing employment opportunities, stimulate consumption, the State Council and People's Bank have also introduced financial policies to support SME development in the new situation, take advantage of incentives, hard skills, strengthening standardized management, and gradually improve their own, to enhance credibility and reduce the cost of credit in the bank loan. make good use of the existing bank financial products, such as bills financing, commercial loans, also broaden the part of the financing, you can transfer part of the equity, to obtain much-needed funds.

(2) establish a sound policy for SMEs and the financial system guarantee regime. SME financing difficulties, but also with China's SME policy-oriented financial system imperfections, improving SME policy-oriented financial system will contribute to a fundamental solve the financing problem of SMEs. China's current policy of the banking system and the development of SMEs asymmetry, market demand, the establishment of specialized financial institutions for SMEs, SME credit guarantee is the standard solutions to SME financing bottlenecks key to the loan and guarantee high-risk, low income, if not into the policy funds to support the enterprise is difficult to maintain normal operations. innovative financing guarantee system for SMEs, the SME financial institutions at the credit rating system lower level, is the main reason for SME financing. the establishment of institutional guarantees for SMEs is one of the ways to solve the problem, the government SME financing guarantee institutions into appropriate policy to financial support, through a flexible mode of operation, the establishment of effective incentive mechanisms to encourage and loan guarantees to SMEs, so that guarantee loans to financial institutions, companies and the formation of communities of interest, risk and profit sharing, effectively alleviate the problem of financing SMEs.

(3) Strengthen and improve the SME credit system is to solve the financing difficulties of SMEs in key credit is the basis of market economy. Business is business credit card, pen reputable business is intangible wealth, is the most important aspects of bank-enterprise cooperation , due to the current credit system for SMEs is not sound, the information asymmetry between banks and enterprises, SMEs lack of credit and information distortion is constrained financial institutions to expand financing for SMEs to expand their business and the key to Strengthen and improve the SME credit evaluation system, the SME credit archives and a series of system construction, to help creditworthy SMEs to obtain bank loans for SMEs can further promote the establishment of a standardized financial management system, banks reputable companies can implement flexible credit policy.

4 financial institutions in order to promote competition, increase the intensity of financial innovation, give into government policy support existing state-owned commercial banks in the institutional setting, product design, credit rating, loan management, and are difficult to adapt to small and medium enterprises in the financial special needs services. to establish the system of loans to SMEs, from the guarantee, credit processes, products, services and other aspects of a comprehensive innovation, and strive to provide financing for SMEs and thoughtful service.

Financial sector is a high risk of specific industries. China's financial industry is still in the state-owned monopoly, lack of proper entry and exit mechanisms, not really a fair competition and flexible situation is not conducive to fully mobilize the lending bank's initiative and enthusiasm, is not conducive to financial agencies explore the potential, and always give top priority to risk stability, there is no business incentive to innovate for the special circumstances of small business loans, the Government should carry out the commercial banks loans to SMEs, to establish an effective incentive and reward mechanisms.

5 to increase government financial investment, expand alternative sources of financing. Most of the necessary funds for SMEs through credit channels to solve for the current situation of SMEs, the Government should increase financial input and actively support the development for a flexible approach solve the funding needs of SMEs, the establishment of SME Development Fund, targeted to help SMEs overcome their difficulties. The Government should encourage SMEs to the outside conditions are ripe, listing and financing, as well as in the domestic SME board in Shenzhen Stock Exchange listing.

6. Regulate the private financing, reduce financing costs for SMEs pressure innovative private financing system. Private lending is not illegal in deposits, lending rates do not exceed the benchmark interest rate four times the premise is a legitimate business; private lending is a widespread social phenomenon, part of the management was not standardized and transparent information is also restricted its standardization. the existence of private lending to optimize the allocation of resources, promote the development of multi-level financial system and the process of marketization of interest rates. as soon as possible to make private capital investment from public to semi-formal of the sun under the supervision of the operation, through institutional innovation, and regulate the private financing, the legalization of some eligible private loans, to set up a private capital based small and medium sized financial institutions, such as small loan companies, rural banks and other new financial institutions, actively adjust credit structure, and appropriately increase the size of credit to SMEs, to increase lending to SMEs. financing for SMEs to provide more choice, but also reduce the effective cost of financing for SMEs, improve the competitiveness of products , strengthen and expand small and medium enterprises more favorable and stable development.

Links to free download http://www.hi138.com