The Financing Guarantee Companies And The Solution Of Small And Medium-Sized Enterprises Fiancing Problems--based On The Example Of Shanghai Steels Trade Market

The financing of small and medium-sized enterprises is a subject which the scholar all around the world is starling constantly for a long time. Because of their own characteristic, small and medium-sized enterprises are difficult to get financial support, and hinder their healthy and continuous development. Many small and medium-sized enterprises can not survive from the competition because of the lack of money. However, small and medium-sized enterprises play important roles in the economic development of our country. They help to animate the market economy, provide jobs and promote the new technology. So, analyzing the financing problem the small and medium-sized enterprises are facing and the original cause, then finding a way to solve the problem have a very important theoretic and realistic meaning.Of this paper concern, how do the financing guarantee companies help to solve the financing problem of small and medium-sized enterprises. This research find that the original cause of the financing problem is information asymmetry, which causing the adverse selection and moral hazard. And the banks take credit ration strategy in order to avoid risk. However, the financing guarantee companies can improve the information asymmetry. Through analyzing the financing mode of Shanghai steels trade market, we can find out why this mode can succeed and what problems does this mode have. And based on these, we should develop professional financing guarantee companies facing special industries and area. Besides, improving the risk management of financing guarantee companies can help them to serve the small and medium-sized enterprises better by themselves, the bank and the government.