Sme Credit Guarantee Innovation Model

At present, guarantee organizations in China rely mainly on launching the loan guarantee, they are being perplexed by the fact that the risks and incomes in loan guarantee are seriously not reciprocal. The urgent demand of guarantee organizations is product innovation, through which they can find a new field suitable for launching the new business on a large scale, and design a little risk, relatively stable guarantee product to meet the request of each side.Through analysis, we can draw a conclusion that SMEs are more suitable for factoring, which provides a solution to cash gap and scarcity of credit management. Yet, commercial bank in China face a lot of realistic predicament in factoring for SMEs and unable to launch it effectively. In fact, factoring itself is combination of financing and guarantee. Credit guarantee organizations and banks cooperate in the factoring business for SMEs on the basis of division of specialization, play their professional advantage in guarantee and financing, not only can solve the predicament commercial bank faced but also can find the ideal new variety of business, at the same time will improve survival ability and development potentiality of SMEs fundamentally.This paper proved the feasibility that Credit guarantee organizations launch the factoring guarantee for SMEs from the angles of transaction cost, resource distribution and evading the risks for banks at first, and provided different cooperative modes under different situations, and analyzed the risks guarantee organizations faced, put forward the measure of taking precautions against the risks, and provide the corresponding suggestions. Finally, the paper give a simulant empirical research on a company.