Sme Credit Risk Assessment Studies

The serious problem facing in the development of small and middle enterprises is the difficulty of financing, which is particularly apparent in recent period. There are many factors leading this situation, including the problems of the enterprise itself such as its small sale, nonstandard finance management, frequent need of fund and the less fixed capital, while the external factors also plays a role. For example, in the long term, our state banks only attach importance to the state enterprises, which results from the difficulty of examining the credit of small and middle enterprise. Thus, the primary problem we should solve is to evaluate the credit risk of these enterprises. This paper carries out a research on the credit risk evaluation in the following aspects.Firstly, through the recent situation in our country, it analyzes the credit risk small and middle enterprises faces and its primary cause.Secondly, it introduces us the existing credit risk evaluation theories and makes a comparison of the major models.Thirdly, with the internal and external features of credit in small and middle enterprises, it at first builds an index system for credit evaluation, which has a low correlation and then can reflect their credit information correctly. Then, by using the AHP method to determine the hierarchy of the indices and their weights, it builds a credit risk scoring model for small and middle enterprises which is used to analyze the 20 small and middle public enterprises.Finally, according to the practical requirement of classification management to credit risk management, it uses k-means clustering method to cluster the evaluation result, and then get the credit ranks the small and middle enterprises belong to.