Study On Credit Risk 2-phase-evaluation Model Of SMEs

Small-and medium-side enterprises (SMEs) are important powers in national and regional economic developing, which provide a great deal employments, various services and goods. However, most of those are in financing binding. It is difficult for SMEs to expand only by retained earning, or financing from bank and market. Government and societies endeavor to improve this situation, but the key factor is till SMEs itself, such as advance of credit level, improve of performance and more unabridged financial data. We discussed the characters of organization development and credit risk of SMEs. Our study based on Organization Development Theory and Behavioral Decision Making shows that owner is the principle factor in SMEs developing, and the credit risk of SMEs are affected by owner's subjective will and enterprise's performance. On the point of information analyzing, we presented an information requiring construction in loan decision of SMEs for bank, whose primary component is owner's personal credit information. Furthermore, we surveied the relationship between level of owner credit, enterprise performance and level of enterprise credit. Then we constructed a credit risk 2-phase-evaluation model of SMEs, based on information reliability validating through evaluating of owner's personal credit information. By statistical analyzing on sample data, we screened out indexes of personal credit and enterprise performance, obtained makeup of chose indexes, and calculated weight of every index. We also tested the model construction by structural equation modeling, after testing the reliability and the variables of data in samples. We concluded that enterprise's performance has positive impacts on level of enterprise credit; level of owner credit has positive impacts on enterprise performance; and level of owner credit has positive impacts on level of enterprise credit through impacts on enterprise performance. In the end, we trial tested the forecast validity of the model with sample data. Those results of structural equation modeling testings show that the construction of our model is practical. And the results of trial validity test show that our model is effectually in some ways, but there still is much work can be done to perfect it.