Information Production, Relationship Lending And Financing Of Micro And Small Enterprises To Improve

Micro-enterprise, as an essential part of national economy, have always been faced with the problem of financing, since they have the following features: in the low end of industrial chain, with small scale, lack available assets, difficult to weigh the ventures and so on.Nowadays, many researchers investigate into the kind of projects. But most of them focus on the organization designing or system designing, while there are little investigation on the technology or information production. Based on the substantive research on relationship lending and information production, this paper aims to discuss the ways for micro-enterprises to tackle the difficulty of financing.Information production is the process to collect, classify and analyze the competitors'information, aimed to minimize the negative effect of asymmetric information in the market transaction. And the relationship lending is just the lending technology that makes credit decisions through the information production after communication with enterprises.In this paper, we put forward the ideas as follow: by means of the information production made by the financial institution, we can solve the problem of asymmetric information, help the financial institution assess clients'venture and loan repayment capacity, then improve the financing condition of micro-enterprises.Specifically, the case study method is applied in this thesis to demonstrate this viewpoint through studying a concrete case of TEMASEK micro-lending model. Mr. Huang, a self-employed entrepreneur in Hehuachi market, has a stable business circumstance. He plans to apply for loan to enlarge his business. According to the traditional lending theory, he has to provide the financial statement and collateral security. But actually he does not have any material that can indicate his goods records or the credit records with financial institution. Moreover, he does not have any collateral security too. If we follow the traditional theory, he can barely get the loan.To help him, the assessing officers collect his information through field study and third party service in the first place. Then, based on the cross validation and analysis, they help the client t analyze the existing cash flow situation, assess his repayment capacity and inclination. At last, the client gets the loan.We come to the conclusions as follow: (1) the relationship lending based on the information production can play an important role on the financing of micro-enterprises, and encouraging the financial institution to strengthen information production is the effective way to change the dilemma of micro-enterprises'financing. (2) in the information production, we should focus on the factors like indicator designing, cross validation, and rapid decision. (3) it's necessary to ensure the transferring and quality, so that we can make best use of the effect of relationship lending.