Study On The Credit And Financing Problems Of SMES In China

In China, SMES play an irreplaceable role in promoting economic development, market prosperity and employment expanding, which are an important part to China's socialist market economy and it's of great importance to promote its development. However, the development of SMES in current encounters a common problem, financing. Financing has become a bottleneck for the surviving and development of SMES, which hinders their development most. Although governments at all levels of China have already taken some measures, but works little. The reason is SMES' financial system in China is imperfect, which makes it hard to get replenishment from the capital markets, financing can only obtain credit from banks, makes the fund-raising channels single. And the effect of the nation's macroeconomic financial policies, highly centralized authority of bank loans to SMES, and the non-sound social credit guarantee system make it still hard for part of the SMES to credit and financing. So how to solve it becomes an urgent problem. This article starts with analyzing the present situation of SMES'credit and financing, gives an in-depth analysis of credit loans and financing problems of SMES, and proposes some advice and solutions to these problems.This paper first defines the concept of credit financing for SMES, introduces the concept of China's current definition of SMES their status and role, describes the methods of financing and SMES credit characteristics. Secondly, gives a comprehensive analysis to status quo of the credit financing of SMES in China, and analyses and expounds why it's difficult for SMES to credit and financing from the corporation itself, policy environment, legal and financial environment, including its imperfect of own system, faultiness of management system, poor sense of corporate credit, poor credit rating, shortage of underlying security ability; unsound financial system, impeded financing channels, imbalanced fund supply and demand; imperfect system of financial institution itself, non-strict management, weak consciousness risk and so on. Then analyses the credit financing system for SMES in developed countries, introduces the advanced experience of SMES credit financing in USA and Japan, sums up a number of successful models and approaches to provide experience for building policy system of China's SMES credit financing. And next takes the Rizhao's SMES credit financing situation as an example, describes the general situation, constraints of Rizhao City's SMES credit financing and its revelation to the other SMES of our country. At last, this article proposes some solutions to solve the problem of being hard to credit financing for SMES on the basis of combing the successful experience of foreign countries, and the constraint proposed according fundamental realities of the country at this stage, including accelerate its own development, strengthen own strength, establish good corporate image; exert government function, accelerate boosting the reform of monetary system, build and perfect financial system and business innovation; set up credit guaranty system for SEMS, develop folk finance, broaden credit financing channels and so on.This paper uses qualitative theoretical analysis combined with quantitative data analysis, according to credit financing current situation of SMES in China as well as taking the successful experience of USA and other countries, focus on the effective actions of solving the problem of being hard for SMES to credit financing. Also this article breaks through the traditional credit management system and comes up with financial innovations and changes in the financial way, and proposes the demand to modify economic and financial environment, commercial bank credit policy and products, striving to make a breakthrough in analyzing and solving the credit financing of SMES in China.