Research On Financing Development Model Of Ultra-low Grade Small And Medium

Since the reform and opening policy, China has entered a period of rapid economic development. It is estimated that 92%of our non-renewable energy,80%of industrial raw materials and 70%of the production goods need strong support of mining industry. And the rise of the real estate industry and automotive industry in the past 10 years caused a great deal of demand for mineral resources. So the mining production has become more important to ensure China's national economy sustained and rapid development. And the vast majority of mining enterprises are small and medium mining enterprises, which can ease the shortage of mineral resources in an effective way. However, the small and medium sized mining companies have no ability to obtain funds from banks because of the constraints of policies and institutions, and the"Endogenous based bank loan supplement" is no longer able to meet the small ultra-low grade mining enterprises'financing development requirements. Therefore, enterprises need a more diversified financing model.To commence the study, this paper is based on the status of ultra-low grade mining companies, trying to find the model that the mining SMEs can comply with the demand of financing development. Firstly, based on ultra-low grade small and medium enterprise's Dilemma analysis and the drawbacks of the "Endogenous based bank loan supplement" and the formation of the internal and external reasons, gave the advise to improving the financing capacity of small and medium enterprises. Secondly, through the study of small and medium enterprises financing channels raised the effective financing development model". Endogenous based diversification within ". Finally, by the actual case of mining companies, proved that the "Endogenous based diversification within" will give businesses more profitable future.