Studies On Risk Assessment Of The Microfinance Companies’ Customers

Since the comprehensive pilot in China in May2008, the small loan companies have developed very rapidly. As of the end of2011, the number of small loan companies is up to4282, and there are193.5billion yuan new loans in2011. The rapid development of small loan companies gives a strong financial support for the small and medium enterprises (SMEs) in China, and it makes a major role in promoting the development of SMEs in China and even individual businesses at the same time. With the number of small loan company’s expansion, their own management, in particular the microcredit company’s own risk management system, exposed more and more problems. So the healthy development of small loan companies need a more comprehensive risk assessment and risk control mechanism.This thesis analyzes the method of investigation, information collection and credit evaluation of the borrower of small loan companies, based on describing the micro-credit risk control theory. Firstly paper described the background, methods and ideas on the research, and explained significance and innovation. After review of the literature, this essay summed up the domestic and foreign experts and scholars on the business of small-scale credit, and course of development of small loan companies.This paper build two aspects of the formation of the system summarized, and complete the risk assessment business system designed for small loan companies. Then it makes study and use of qualitative analysis and quantitative models the combination of a comprehensive analysis of the risk assessment system for small loan company customers.Loan before the due diligence, there are financial due diligence and non-financial due diligence on customers’financial situation in two parts. This paper analyzes the focus of financial investigations required for the vast majority of financial indicators, which can be a good indication of the customers in the financial report data and reflect the customer’s production and operation situation intuitively. SMEs in practice, often in order to get more loans and lower interest whitewash books. In the empirical part, the Logistic model analyze of the client’s financial situation.1862enterprise A-share in2010is listed as a sample of regression, of which127ST companies as a breach of contract sample and the1735normal as a reference sample. The regression results show that the forecast rate is high for normal circumstances, reaching99.3percent. While the forecast rate for defaults is only24.4%, and therefore it must be combined with other methods to assess the credit risk of customers. According to the complex field of microcredit customers at different stages of the industries, this paper proposed innovative ideas to use Porter’s five forces model of industry analysis. At last it conducts an empirical analysis of small loan companies in this industry as an example.Loan risk early warning system weights analysis of the key indicators to determine each event, the impact of the overall credit score, credit rating and in accordance with the final score. The empirical part of the analytic hierarchy process to calculate the matters agreed scoring weights, in the practical application of this simple method you can use different scoring models according to the characteristics of the customer’s design. Found in the empirical conclusions of this section, the operator’s impact factor is lower than the impaction of production and operation. This corresponds with the actual situation that enterprise profitability and cash flow directly impact the company’s short-term solvency.Finally, according to this article a combination of theoretical and empirical analysis, suggestions are given that how to improve the quality of financial data, build actively networked credit information database, and build the authority of a professional credit rating system.