The Selection Of Trust Financing Means Of Small And Medium-sized Enterprises (SMEs)

Small and medium-sized enterprises (SMEs) play a very important role in economic growth and society development of China, yet financing difficulty has been the choke point of their growth and development.Trust in this Law refers to the act in which the settler, on the basis of confidence on the trustee, entrusts certain property rights it owns to the trustee and the trustee manages or disposes of the property rights in its own name in accordance with the intentions of the settler and for the benefit of the beneficiary or for specific purposes. Trust financing relative to the means of traditional financing is flexible and fast, take simple procedure and low cost. So applying it to the SMEs financing will take a great significance in resolving the SMEs financing difficulties both in theory and actuality.Proceeding from the SMEs financing difficulties, this thesis cites the relevant theories of Finance Function, Financial Innovation, and Principal-agent theory. Comprehensively analyses micro-environment and macro-advance of the SMEs financing. It focuses on several feasible approaches to trust financing for the SMEs: capital loan, stock right, creditor's right, beneficial right transaction and leasing right trust financing. The thesis analyzed the inside of the transaction structures and all sorts of risks of the trust financing by applying the method of system analysis, comparative analysis and case-study analysis. Furthermore, estimate and prevent the risks of SMEs trust products by VaR risk control method. In addition, multi-layer policy system can be established and improved to ensure the SMEs financing running well.This thesis will explain that there is much room for trust financing products to develop in SMEs and will be the practical, important choice of SMEs to finance.