Establishment Of Sme Credit Rating Model And Its Application

Recently SMEs have played a more and more important role in promoting national economic growth, relieving employment pressure, optimizing the economic structure, increasing foreign trade and so on. The information asymmetry between SMEs and financial institutions has affected financing action and efficiency in financial institutions.Besides SMEs have some personal defects, which will cause financial institutions to add some harsh requests when lending to them, such as payback period difficult to calculate, default risk uncertainty and so on, thus they will greatly hinder the development of small and medium-sized enterprises.This article intends to solve problems of financing difficulty in SMEs enterprises, based on the lessons drawn from domestic and international advanced rating methods and technology, aiming at the development of SMEs at present situation and their characteristics, combining domestic credit rating of theory and practice experience to establish a specifically for SMEs'credit rating model, which strives to be scientific and can accurately reflect the Chinese SMEs'credit conditions, and solves the SMEs'injustice problem in the financing when credit rating, and aims to solve the financing difficulty problem from credit rating angle.During the index system building process, this article preliminary selects index to do the correlation analysis and discrimination analysis, increases the index system's science and effectiveness. In determining the weights of credit rating index system, the article introduces a new method of open class method (SD), and through empirical analysis it confirms that compared with traditional analytic hierarchy process (AHP), the open class method has good quality of object, transparent evaluation process and the good preserve of sequence. At the same time, to enhance the justice,objective,and scientific of the model, this paper combining quantitative analysis and qualitative analysis method to establish credit rating model.To illustrate the validity of the model, we applied the model in SME credit rating; the results indicate that the established model has a good credit rating effect. It can help financial institutions to determine credit level of SMEs effectively, make the correct credit decisions and take the appropriate measures to prevent risks.