Short-term Financing Of Smes Accounts Receivable

SME (Small Medium Enterprise) has been the most important apartment in China, which makes an important role in China's development. Both Central government and local government should improve their law and regulation to support the development of SME. In recent years, SME develop very quickly. Now, the SME has taken up 90% of all the enterprises in China, and provides 75% the opportunities of employment. The value that created by SME has taken up 50% of the China's GDP. It has made great contribution to the Chinese economic development.As we all know, it's not a problem arousing at present that SME can hardly get financing, and it's not a problem that just for China. However, in the developed countries, the unofficial equity market, venture capital system, and the development of the second board market, to a great extent, make up for the gap of the SME financing. The SME's financing embarrassment in China has some special reasons other than the general reasons. In the converting process of the economy and financial system, the faultiness of the micro-running base in the marketing-economy system caused the institutional conflicts. In resent years, solving the SME's financing embarrassment became the discuss focus of the government and the financial area. And it's an important task for us to do some research and try to find approaches to the fund-absorption of SME.In the author's opinion, development of SME mutual credit system and financial institution of the same scale and improvement of the SME's information availability may improve SME's financing conditions by reducing information asymmetry. In the thesis, the AR finance will be viewed as the best and most available way for SME's healthy development.From microeconomics" perspective, development of AR finance will help enhance liquidity and mitigate fluctuation of our economy. From microeconomics' perspective, furthermore, AR finance will not only relief the capital shortage pressure of small and medium size enterprises, but will serve as a new profit growing point of bank businesses.The essence of AR is to transform the static trade debtors of enterprises into...