Research On Commercial Credit Financing Management Of Small And Medium - Sized Enterprises

Middle and small-sized enterprises are playing an important role in economic growth in many countries, but financing difficulty has been a longstanding bottleneck for these enterprises as well as governments. Especially in China, unsound finance system and high threshold in capital market make financing more difficulty. Many enterprises turn to commercial credit financing as they cannot make financing in capital market. Commercial credit has the functions of financing capital and financing goods while it is convenient and low-cost. This comparative advantage attracts many middle and small-sized enterprises. According to a statistic, commercial credit financing is 43%-63% of the debt financing sources in many enterprises, much higher than bank loan. Commercial credit has been an important way to solve financing problems and keep sustainable development. For factors influencing commercial credit scale and its influence on enterprise performance, deep researches should be done and it is of great significance to solving the financing difficulty for middle and small-sized enterprises.The paper’s research sample is data of Small and Medium Enterprise Board Listed companies from 2010 to 2014. The purpose is to discuss solutions to financing difficulty for medium and small-sized enterprises on the base of summary of related domestic and foreign research results and financing status in these enterprises. Main direction of the study is commercial credit financing, aiming to provide theoretical support for enterprises to widen financing channels and improve financing structure. Methods taken in the study are mainly descriptive statistical analysis and empirical analysis as well as qualitative analysis, quantitative analysis, knowledge of applied statistics, finance and accountancy, comparison, induction and demonstration. The core is Empirical validation on the base of theoretical research and conduct a comprehensive, real and scientific analysis by qualitative analysis. With respect to analysis on factors influencing commercial credit scale and its influence on enterprise performance, the first work is descriptive statistical analysis by statistical induction. Then a multiple linear regression model is built by using sample data. The correlation between variables is examined and some rationalization proposals are put forward. The paper is consisted of five parts. The first part is Introduction, in which the author states the research background, purposes and significance, introduces ideas and methods and summarizes the innovations in the paper. The second part includes literature review and related concepts. Core concepts and features are defined for theoretical analysis. The third part analyzes factors determining commercial credit scale and its influence on enterprise performance. The fourth part is the descriptive statistical analysis and empirical research on factors determining commercial credit scale and its influence on enterprise performance. The first item to be defined includes empirical research purposes, sampling range, collection of data and descriptive statistical analysis. Then the demonstration model is built according to analysis results. The last work is to conduct analysis and discussion based on the model in order to get proper suggestions. The fifth part is conclusion and suggestions.The results and statistic and analysis are referred to for corresponding measures and suggestions in order to reduce the stress of medium and small-sized enterprises and find better solutions to financing difficulty. The paper gives advices on the level of enterprises and governments.