A Study About Reconstructing SME Credit Guarantee System Based On Market Positioning Perspective

Small and medium enterprises has been facing difficulties in financing andgetting loans in the development process, establishment of SME credit guaranteesystem is an important means for countries to support the development of small andmedium enterprises. In 1992, china began building the policy guarantees for themain, commercial guarantees and mutual guarantees for the two wings of the SMEcredit guarantee system, but in recent years the system development has been toerrors, that the main mode of the system is commercial security. Credit guaranteesystem does not give full play to the policy function. Therefore, the reconstructionof the SME credit guarantee system is very important to China’s guarantee industryand the development of SMEs.At first, the study describes the current situation of China’s SME creditguarantee system and reveal the three dilemmas: the plight of the main mode, therisk control of model tends to bank and the dilemma of profit model. The mainreason of the three plight is that the credit guarantee agencies are lack of a clearpositioning in carrying out the guarantee business process. Therefore, in order toprovide positioning decisions for the credit guarantee agencies carrying outguarantee business, the study analyze the first source of repayment and the secondsource of repayment.The study have useful inspiration to build the SME credit guarantee system inChina on the basis of learning from the successful experience of international SMEcredit guarantee system. At the same time the study reveal the limitations of thecommercial guarantee institutions for the main mode in the new managementapproach. The credit guarantee system have to reconstruct. The basic orientation ofthe reconstruction system should adhere to the policy guarantees for main model.The new system should clear the market positioning of all types security institutions,and build a new model of financial subsidies. At the same time the study put forwardperfect recommendations to the credit guarantee system.Finally, the article has a case study on A guarantee company. The study makethe market position for A guarantee company by assessing the first source of repayment the second of repayment of the applied guarantee project. Then the studygive recommendations for A guarantee company to optimize market positioning.