Promote Trade Financing To Solve The Problem Of Financing Of Small And Medium-sized Foreign Trade Enterprises

Nowadays, capital shortage has been the "bottleneck" of the development of foreign trade enterprises, especially for those of small or medium size in China. Being incapable of getting financing has been the block in their development all along.In recent years, trade finance has become the most effective and the most convenient way to solve the above problems. For enterprises, compared with traditional lending business, international trade financing pays more attention to the background of trade audit. It requires fewer conditions and simpler procedures to ensure the timeliness of financial intermediation. For the banks, little risk and high earnings are the most remarkable feature of international trade finance. The development of international trade financing is not only a substantial increase in the amount of international settlement, but also lead deposit-taking business and intermediate business. Nevertheless, in practice, it is difficult for small and medium foreign trade enterprises and banks to reach a consensus in trade finance due to lack of collateral.In this paper, based on the analysis of the theoretical, according to MK's case studies, the author conclude that trade finance is the most effective way to solve the problem of financing from small and medium foreign trade enterprises.This paper is divided into six parts. The first part briefly describes the overall content and structure of this article; The second part describes the development of small and medium foreign trade enterprises, raises the issue of difficulties in financing, and points out the advantages of the development of the trade financing; The third part proposes to improve the program through the MK's actual situation of financing; Part IV analyzes the problems and difficulties of financing which the small and medium foreign trade enterprises face; Part V proposes some suggestions deals with the Financing problems of small and medium foreign trade enterprises; Part VI summarizes the views of this article.The following are the unique insights and features of this paper:First, the financing of small and medium enterprises has become a global focus, and the theoretical circles at home and abroad have launched a lot of exploring. However, there is little research on the financing problem of small and medium foreign trade enterprises, the author gave enough attention to this area when choose the topic of this paper; Secondly, the author developed for the MK program, which will guide the future development of MK; Thirdly, this paper proposed some suggestions dealing with the financing problems of small and medium foreign trade enterprises.Anyway, the author tries to put forward some opinions of her own, to give some help to small and medium sized foreign trade enterprises solve their financing problem.