Research On The Financing Difficulty For Small And Medium-Sized Enterprises

The financing difficulty for SMEs has become the social issue which gets a wide attention in recent years, that is because SMEs are going into a rapid developing phase in our country ,and becoming the important social and economic power ,who play the decisive role in various aspects of economic and social life nowadays .However, from their financing channel we can see, whether their inside-source financing or outside-source financing, direct financing or indirect financing, SMEs all face lots of realistic and unsolvable obstacles.Although it is a systematic project to solve SME's difficulty in financing and we need take all kinds of measures to solve it, concerning the Four state-owned commercial banks'standing in national finance and their solid fund strength ,at present the quickest and directer way to completely solve SME's difficulty in financing should depend on the positive participation of state-owned banks. However, due to historical and systematic and other reasons, there still exists much abuse in the present credit management mode of state-owned commercial banks, which directly stops SMEs'smooth process in financing .For a long term, there has no enough research on SMEs'financing and state-owned commercial banks'credit management mode for SMEs ,schemes and thoughts which can solve the problem intentionally and technically are seldom put up .In my opinion, it needs time to change the system and rules and regulations, so specific and detailed operating measures and schemes are most necessary to solve SMEs'financing problems. The rule of banking credit is the unity of safety and profitability and floatablity, to encourage state-owned commercial banks to assuredly and positively participate in the credit market for SMEs, they should be relieved from worries about their two most concerned links as bank profit and risk control, thus present bank credit management mode has to be effectively improved. By drawing up the method of SMEs'customer contribution and strengthening the construction of SMEs'overall risk management system with economic capital management measures, state-owned commercial banks ,on the basis of comprehensively balancing loans'safety and profitability , can get considerable achievements by positively developingthe SMEs'business market ,which adds their confidence and interest in financing SMEs more .Besides, to better meet the actual needs of SMEs'financing ,relative reform and innovation in the credit business types and operation processes of present state-owned banks should be carried out, including making those products which really meet enterprises'needs.In the first chapter in this article I summarize the development of SMEs in our country; in the second chapter I especially analyze the present situation and characteristics and current difficulty of SMEs'financing ,morever, with detailed data comparision and analysis ,pointing out that solving SMEs'difficulty in financing should depend on the effective support of the Four state-owned commercial banks ;In the third chapter I make an inquiry into the present financing status of foreign SMEs and the experience of SMEs'financing by foreign commercial banks ;The fourth chapter is the core of this article, in which ,on the basis of the study in SMEs'financing in above chapters ,I put forward the measures to solve the SMEs'financing difficulty .In its first section I emphasize bringing government's functions in solving SMEs'financing difficulty into play , improving relative laws and rules and carrying out favorable policies for SMEs ,in its second section I especially illustrate that from the angle of risk control and profit increase ,internal commercial banks should regard and recognize the meaning of SMEs'financing again ,thus adding their loan to SMEs; in its third section I make a suggestion to improve the state-owned commercial banks credit business in SMEs ,especially inquiring into the possibility of developing SMEs'self-redeemed trade financing business and combining bank loan with finance lease in project loan ,in order to expand the state-owned banks'financing business in SMEs with feasible and effective business innovations at last .