The Research Of Small Enterprise's Financing Difficulties From The Bank's Credit Model And Preferences

As the main body of the market, Enterprises, play an important role in promoting the development of the national economy, especially the SMES should not be overlooked. According to the statistics, the SMES account for 99% of the total enterprises in our country. They created 60% of GDP and 60% of the export trade at the end of 2008. The SMES crested 76% or more industrial added value since the 1990s. The SMES have played an unnegligible role in promoting employment, increasing government revenue, promoting economic development and technological innovation. Since the financial crisis started from 2007, the Chinese government has implemented a variety of measures to stimulate the economy. National credit increased rapidly. But these funds didn't inflow the SMES heavily, which demand more funds. There are many financing channels for SMES, including direct financing and indirect financing. But the direct financing such as bonds and capital markets are strict in entrance requirement, so bank loans have become the main means of financing channels. Because of asymmetric information problem and the imperfections of the SMEs, banks more inclined to lend to large enterprises. Financing difficulties doesn't only exist in our country both in abroad. So the problem is a hot topic. In this paper, author takes the form of a questionnaire to study the problem. This paper will analyze the financial difficulties from the prospect of banks. The author will provide some suggestions at the end.Firstly, small enterprises are defined and the paper illustrates the Current Situation of China's small enterprise development. Secondly, it analyzed the reason of the financing difficulties from the prospect of banks. The questionnaire mainly related to the bank's basic attitude toward small business, credit model, credit risk management, etc. Based on the statistics on questionnaire data, the author concludes the bank credit preference to small businesses and the characteristics of the credit model. Then this paper analyzed the economic theory underlying bank credit, mainly from the asymmetric information theory, the cost-benefit theory, and the credit guarantee. Finally, based on the foregoing analysis, the influence factors to small business credit are summarized, and some proposal are provided.