The Research On The "Group" Financing Model Of SME Cluster

30 years of reform and opening up, with the rapid economic development, many regions in our country especially in Zhejiang province there come a large number of SME clusters, which are mostly leaded by private economy. These SME clusters have become the backbone of the local economy. But in the real economic operation, the financial support that SMEs obtained is gravity not matched with their contribution to national economies. Financing of SMEs that relies on the cluster has significant theoretical advantages, but in reality, SMEs still face financial difficulties. This is not a fallacy of the theory but the lack of a financing mechanism which can make theoretical advantages of SME clusters into real advantages. Based on this, the proposed "group" financing of SME cluster, will help to turn the theoretical advantages of SME cluster financing into reality.This paper mainly based on cluster theory and SME financing theory, drawing a large number of related literatures, using chart-analysis and logic reasoning method, makes a preliminary exploration on SME cluster "group" financing model. This paper is expound in the order of explaining the proposed background of "group" financing model of SME cluster, analyzing the feasibility and necessity, explaining the mean of the model, designing the model's framework, analyzing the model's characteristics, operating mechanism, utilities and proposing policy recommendation at last. This paper argues that with the "group" financing model of SME cluster successfully operating, both to achieve the cluster's "quasi-endogenous" financing, but also to achieve efficient "exogenous" financing of SME cluster. This model can not only promote the internal flow of cluster fund, but also increase the supply of external funds, and it will significantly improve the availability of SME financing. It is another effective way to solve SME financing problems. The "group" financing model of SME cluster is the enrichment and development to SME financing.In this model banks and other financial institutions offer SMEs loans through the cluster financial company. The company provide guarantee for the loans. This kind of relationship leading pattern can reduce transaction costs and credit risk of banks and other financial institutions and significantly improve the return on loans. This model realizes the positive interaction between SME clusters and the financial institutions. The cluster financial company is the link among the SMEs in cluster. The company increases the concentration of the cluster which will help the local governments make economic policies about the cluster and strategic plan of the cluster's development, guide the cluster to develop in a sound and orderly way and promote the further development of regional economy. At last, this paper offers referred suggestions which will propose the implementation of the "group" financing of SME cluster from 3 levels:government, financial institution and SME cluster.