Analysis Of SMEs Financing Based On Bank Credit

The enormous function of the small and medium-sized enterprise (SMEs) is paid attention to by various circles day by day, the finance difficulty of SMEs come into being the focus. In order to solve the financing difficult problem of SMEs of our country effectively, we need not only deep theory study accord with national condition, but some reasonable and operational settlement measures.This article proceeds with a survey of theoretical study on SMEs finance, then analyses systematically the important function of SMEs on national economy and the reasons of the financing difficulty of SMEs. We believe the information asymmetry between SMEs and outside and the high financing cost caused by SMEs'financing characteristics are the important reasons of the financing difficulty. By analyzing and comparing direct financing and indirect financing model, the author believe indirect financing model is more fit for SMEs financing. Because of the characteristics of regional management, business models, organizational structures of medium and small financial institutions, they can effectively mitigate the degree of information asymmetry and reduce the financing transaction costs, so they are more apt to supply credit to SMEs. Then the article draws a conclusion that the best way to solve the financing difficulties of SMEs is to develop and perfect medium and small financial institutions.The banking reformation of China had made prominent results in recent years. The monopolistic position of State-Owned banks had been weaken, medium and small financial institutions had experienced rapid development and made good achievement and became a important force that can not be ignored. But at the same time we should also be clear that in many areas the development of small and medium financial institutions was not fully and there were some problems and hindering factors facing these financial institutions, which seriously restricted its function of SME financing. Based on these realistic problems, the author put forward some suggestions and tactics to promote medium and small financial institutions, such as reforming property rights and the structure of corporate governance; establish correct market positioning; Strengthen financial innovations, improving the quality of credit services; Strengthen policy support and financing environmental construction, etc.