The Study On The Influencing Factors Of The Ability Of SMEs To Get Credit

SME is playing the crucial role in prompting the development of nationaleconomic, improving employment and the economic structure. But the financingproblems are now standing in the way of development of SMEs. Since most of theSMEs have been in the period of growing, it makes they are particularly in need offunds for input or operation. However, the lack of capital and limitations of securitymarket makes they depend on loans offered by financial institutions. Because of theasymmetric information between SMEs and the financial institutions, the latter isstrict to the applications of SMEs for the concern of risk and cost-control. Thus theresearch about influencing factors of the ability of SMEs to get credit and the wholemechanism is becoming increasingly necessary.Based on the theory of asymmetric information and the relationship betweenbanks and enterprises, from the two points of view in theories, the paper analyzes theinfluencing factors of the ability for SMEs to get credit and summarizes themechanism through which the factors affect. Having modified the former model, asthe main influencing factors, the paper explains how the mortgage and therelationship between banks and enterprises have impact on the ability of SMEs to getcredit. After the comprehensive description of the theories, based on the data of SMEsof Hunan province, some analysis results and hypothesis, the model is built to do theeconometric analysis by using SPSS.The analysis of theoretical model shows that when there is Ex ante informationasymmetric between banks and enterprises, high-level enterprise can get large scale ofloan and lower interest rate by offering more mortgages; when there is Ex postinformation asymmetric between banks and enterprises, good enterprises can get loanswithout collateral; the longer the duration of the relationship between banks andenterprises, the greater the probability of access to loans for SMEs. Empirical testresults show that when banks decide whether to grant loans to SMEs, more stress isplaced on business loans over money to the number of banks is not the relationshipbetween the length; banks determine the size of the SMEs by the number of capitalrather than the number of employees.Finally, according to the results of the theoretical analysis and the empiricalanalysis, the paper proposes some questions on policy: the SMEs improve their own quality to raise the ability of financing; financial institutions improve the creditsystem to increase the willingness of credit supply; the banks and SMEs sign thecredit agreement successfully by improving the credit guarantee system and loanpricing mechanism.