An Study Of The SME Debt Financing Based On Risk Control Perspective

SME debt financing and risk-control study of the problem is the financial and risk management for SMEs is an important theoretical research topics and practical issue. SME debt financing and risk control of all aspects is full of complexity, how to build a scientific and reasonable debt financing and risk control system, how to more effectively meet the SME development framework for building cohesion, to remind the risk of debt financing for SMEs pay more attention to prevention and control, small and medium enterprises in the national economy into full play the positive role, it would be debt financing and risk control measures, methods, process innovation the most pressing issue. For team building and management of group companies to further refinement, the division of the fundamental needs, from the current small and medium enterprises in China’s national economy played an important role, in promoting economic growth and employment has played a very important role, However, the development situation, due to various factors, the main use of debt financing to raise funds for debt management, easy to face greater business risk, above the background of SME debt financing and risk-control study of the problem more obvious practical significance to the reform of financial management for SME and provide risk control system to protect the system reform, is to optimize the SME debt financing, approaches and methods to improve risk control and effective way.In addition, the operating characteristics of the SME perspective, lending to banks and other financial companies, debt management is now widely used by SMEs in China business model. Continuation of SME, development of financial requirements, which not only have to maintain a simple reproduction of capital, but also have some funds to expand production, the company needed capital to run their own accumulation alone is not enough, this to a large extent from external financing needs. Debt financing can meet production needs, improve market competitiveness; financial leverage can be effective to reduce the loss of currency depreciation and lower overall cost of capital; but also increased the financial risk. The risk of SME debt financing, risk prevention measures proposed to reduce the risk of loss, can contribute to better and faster development of SME, in order to make a greater contribution to the national economy.Smooth financing of SMEs is an important guarantee for its bigger and stronger. Reasonable financing structure is conducive to small and medium enterprises to avoid financial risk, so that they can have a favorable position in the fierce market competition. This article is based on the market role of SMEs, the problems of current debt financing and relative risk, so we put forward to promote SMEs direct debt financing, encourage the SMEs to adopt the indirect debt financing, to establish the risk control system, Thus to chief the goal of maximizing enterprise value.In summary, showing the social background of the increasingly obvious trend was the rapid paces of development in the current market economy, in the national economy the SMEs played the positive role, starting a systematic study of SME debt financing and risk control has a greater necessity. It is Timely to use of a scientific and reasonable management system to change the status quo of China’s SME debt financing in the practical level. Therefore, it is necessary to take the theoretical analysis and empirical analysis, the combination of the way to solve the problems in the field of SME debt financing and risk control theory and methods. How to improve the practical effect of SME debt financing and risk control, and give full play to small and medium-sized enterprises to improve the speed of development of national economy and the level of the role, has important theoretical value and practical significance. In fact, the most important financing difficulties of SMEs should be understood from the rules of market financing and the characteristics of SMEs, or financing difficulties of SMEs, or no solution rectifiable or lead to more problems. This paper from the SME risk control perspective, exploring the risks and prevent problems of SME financing, and possible financing of response measures, to strengthen the financing environment for SMEs.In this study, the first based on strategic direction, goal-oriented, management-oriented, control-oriented, from the theoretical analysis of SME debt financing and risk control theory of meaning, including four aspects, namely: business efficiency theory, the enterprise value maximization theory, risks of modern corporate finance theory, the modern corporate finance theory, specifically the attributes and characteristics of small and medium business, the definition of SME, the competitiveness of SME in the content, MM theory, the trade-off theory, agency cost theory, asymmetric information theory, control theory, finance, financial leverage risk, financial leverage, corporate governance theory. On this basis, the debt financing instruments and debt financing property are further described.Secondly, from the overall analysis of the current situation of SME debt financing, mainly from a different perspective, the characteristics and the reasons, mainly related to debt financing for SMEs based on the life cycle, debt financing situation of SME directly, the status of indirect debt financing for SMEs, single path of debt financing, high cost of debt financing, debt financing ratio is irrational, and related measures for financial institutions, internal operations and external financing environmental impact. Again, on the basis of the above theory and practice of research, expand the SME debt financing, risk analysis, the commencement of this part of the risk connotations, because debt financing for SMEs, there is division of the degree of risk and analysis of the financial effect. Finally, the combination of the above sections of research, proposed the establishment of the risk control indicator system and to strengthen the SME debt financing, risk control recommendations. Finally, the combination of the above sections of the relevant research to regression analysis as a means, proposes to strengthen the SME debt financing and risk control policy recommendations.In this paper there are a total of five chapters, each chapter as follows:Chapter one:Introduction. Reviewed the relevant literature, put forward the research goals, research, research methods and technology roadmap, and a detailed description of the main innovations and shortcomings.Chapter two:Overview of SME debt financing. Mainly from the theoretical level, including a variety of SME theory and debt financing theory, debt financing definition, classification, characteristics and path-related properties are analyzed theoretically; provide a theoretical basis for the following study.Chapter three:SME debt financing situation. The status of the SME debt financing from a different angle of view, including the debt financing for SMEs in the different life cycle status quo, the direct debt of the Financial Situation indirect debt financing status quo and the use of SMEs on debt financing instruments, according to the status quo The analysis of the characteristics and find out why.Chapter four:SME debt financing, risk analysis. Mainly debt financing from risk control perspective, including the three reasons the definition of risk characteristics, classification, risk, the risk of debt financing to produce both positive and negative financial effect, according to the different appearance of the risk on the risk classification.Chapter five:the risk control and recommendations of SME debt financing. There are both qualitative and quantitative respects. The quantitative aspects of the proposal are to establish a risk control index system. SMEs, due to the risk of the inner and outer debt financing more difficult, so debt financing, risk control index system is still as important, two aspects of major from the following to select specific targets, a payment of debt financing risks, a operating the risk of debt financing. According to the causes of the risk of two types of debt financing, payment of debt financing risks are divided into received the current capacity, debt structure and liquidity three indicators, the business risk of debt financing is divided into profitability, operations, solvency, capacity development, information transparency and managers of quality risk attitude of the six indicators, each indicator and the corresponding ratio to quantify the different risk categories corresponding to different indicators system; qualitative aspects of the proposal is one to be established for SME debt financing the financial services system, the second is to establish a debt financing, risk control system, to further improve the financial institutions of the regulatory regime supporting policies for SMEs, Fourth, to further promote the diversification of the debt financing market instruments, five to establish a bond rating system for SMEs to open up a wider path for SME debt financing.This article discusses the causes and characteristics of the status quo and status quo of China’s SME debt financing, and from the risk control perspective, discuss the risks faced by the SME debt financing, the causes of risk, the level of risk by to establish risk control index system and better policy recommendations of the debt financing for SMEs. Of course, there are inadequacies, mainly in the analysis of the status of (1) debt financing instruments data sources may be difficult.(2) Qualitative analysis of the risk control indicator system limitations, the lack of evidence of relevant cases.(3) Because of the capacity constraints of the researcher knowledge areas, the level of research, in the writing of the paper may encounter unpredictable problem, I would seriously analyze the reasons for the problem, put forward and seek solution that may have a very significant impact on this article.