Research On Financing Of Forestry Smalland Medium-sized Enterprises

Small and Medium Enterprises (SME) takes a key position in the development of nationaleconomy. The SME development is a foundation of national economy development and standsa strategic position closely related with livelihood and society stability. SME is playing a keyrole in economy development, employment conditions creation, deepening reform andopening up, improving people’s living standard and building up a well-off society in aall-round way.As the decreasing of global forests resources, the continuous deterioration, the globalclimate warming, international society is deepening understanding the maintenance of specialfunction of human existence; forests have been playing a key position in international politicaland economic position. As a key public welfare undertaking and foundation industry, forestsafford ecological construction and agriculture products supplies and play a strategic position innational economy and society development. Due to forestry weakness, long business cycle,low economy payoff and high investment risk, many forestry SME are facing weather andnature disaster and market risk, SME is not able to receive payoff in short term. Moreover,high operation risk and instable profit make many SME facing bankruptcy or fall in business.Therefore, SME is facing serious credit crunch.This article introduces related theories with SME financing including the financingstructure theory,analyses SME financing situation in our country. Based on the definition offorestry SME,analyses the main problems in our forestry SME financing conditions deeplyand in a whole economic picture. Though the research of American, Japan and Germanforestry SME financing experience,we could draw some inspiration. Forestry SME financingcreation and includes four sections: bond financing and stocks financing, forestry rightmortgage loan,discount loan,policy-orientated loan. Forestry SME practice stock and bondmarket financing,forestry right mortgage loan, discount loan, policy-orientated bank loan jointly with forestry insurance. These case studies analyze forestry SME financing creationmethod and practice.These suggestions are good legal environment supporting forestry SME financing,positive tax policies benefitting forestry SME, wide forestry financing channels, perfectingSME indirect financing mechanism, building up the credit guarantee system for forestrySME, perfecting policy-orientated forestry insurance mechanism, promote the collectiveforest right mortgage loan mode,forestry SME solid inner structure,which can improveforestry SME financing conditions.It is to strengthen the coordination of fiscal and credit funds, build up Unique andcomplementary functions of forestry SMEs financial support system, prominent dominantposition of policy-orientated finance in the development of forestry SME, promote forestrycapital markets and widen the forestry financing channels. Moreover, this part introduces thecreation of innovation of this article,shortcomings and future research area.