Sme Financing And Credit Guarantee For Study

Small and Medium Enterprise (SME) is a new force of world economic development. Its role to promote economic development is obvious. The SME in more developed region of our country takes unparalleled roles. Originally, a lot of SMES rely on its owners' savings, which also called source finance. During the process of enterprises' development, the savings cannot often satisfy the needs of their development, so they must seek external capital. It is the transition from source finance to outside finance. Any enterprise will undergo this transition during their development. Outside finance plays an important role for the development of SME.Usually, SME firstly select the loan of the commercial bank in outside finance. Commercial bank often asks SMES to offer the guarantee of higher proportion when loaning for the grant. But because of limited asset, a few things for mortgage, non-standard management as well as adverse selection and moral risk caused by asymmetric information etc, SMES often become the object of "manipulative loan "of commercial bank. Folk borrowings and appearing on the market, is very limited for the SMES that seek capital. During the seeking, the SMES often encounter" finance bottleneck" for the reasons such as: unitary finance channels, high finance cost, irrational finance structure, credit allocation of banks and un-sound credit guarantee for SMES etc. The primary reason of finance bottleneck "is that the finance ability is insufficient, adverse information is serious and that the system of credit assurance for SME is the un-sound. To solve finance problem, this paper thinks that we can not only adopt innovative finance model such as: Finance Lease and Asset-Backed Securities etc, but also establish and strengthen the system of credit guarantee of SMES. With credit guarantee, SMES will more easily get the loan of commercial bank, at the same time, commercial bank can reduce its financial risk and preserve bank asset. The system of credit guarantee for SMES in our country is still in primary stage. After groping ten years, they have gotten some accomplishments, at the same time, also exist many problems, such as: capital source of guarantee organization is unitary; The credit consciousness of SME is light; Bank would not share risk with guarantee organization totally and also ask high guarantee proportion; Government often interferes the business of guarantee organization by administrative means; The whole country has not establish unitary credit system and the environment is poor. According to related theory of the credit guarantee of SME, adverse information in credit market; ineffective market and defective market; risk transfer etc, evidently, we can begin from the following aspects to solve the credit problem of SME, which is: Widen capital source ofguarantee organization; Strengthen commercial bank to share risk with guarantee organization; Develop the policy guiding role of government; Strengthen the service construction of credit guarantee system to SME. Certainly, if no satisfactory finance service system of SME, it is an empty sentence to solve the problem of SMES' financing and credit guarantee. Because the institution of SME belongs to tempted but not mandatory, therefore, government's service, for SME, should be to politically guide medium and small financial organization to healthily develop and offer excellent environment for SME'S development.