Research On Credit Financing Of China's Small And Medium-sized Enterprises

SMEs are extremely important in the economic development of our country, which is playing a more and more important role in the entire national economy. They have become an essential socio-economic component. But China's own developments of SMEs are faced with many difficulties; especially the issue of financing that has become a bottleneck restricting the development of SMEs. Only resolving this problem, SMEs can grow and develop excellently. In particular, as the main financing channel for SMEs, there are still many obstacles in credit financing. There are still many inadequacies in our credit financing system, which is difficult to meet the funding needs of SMEs.To solve the current difficulties in financing problem for China's SMEs, many scholars researched the mechanism of this phenomenon and put forward solutions and recommendations from the theoretical and practical point of view. Current theoretical study focused on difficult financing status and analysis of the causes of this situation of SMEs, and also pointed out that indirect financing from commercial banks is a realistic choice now to solve the problem of financing. This paper analyses the status quo of China's SMEs and various financing methods. Then it draws that financial credit is the main financing channel for SMEs. In this paper, the innovation lies in the fact that by comparing with SMEs of the United States and Korea, the financing of SMEs in China have great gap with developed countries and newly industrialized countries' in the laws and regulations, government institutions, financial systems, financial services and so on. And then it provides a theoretical basis for countries to make policies and measures to solve the problem of financing difficulties of SMEs.In the first chapter, the article introduces the research background and research significance, as well as research results of credit financing of china's SMEs. In chapter II, it first introduces the current mode of financing and methods of choice of SMEs, and then elaborates on the status quo and existing problems in the financial system of China's SMEs and come to that credit financing is a realistic choice for SMEs. In chapter III, by comparing with SMEs of the United States and Korea, the financing of SMEs in China have great gap with developed countries and newly industrialized countries'. We can get some enlightenment that provides a theoretical basis for countries to make policies and measures to solve the problem of financing difficulties of SMEs and how commercial banks to provide financial service for SMEs. In chapter IV, through the above analysis, it comes to the reasons for financing difficulties of our country's SMEs and the gap with foreign countries, and it proposes a number of policy recommendations to solve the financing difficulties for SMEs and provides some reference for our policy.