Study Into Sound Credit Management Mechanism Of Small Loan Company

The development of our country economy pushed the financial industry reform deeper and deeper. The last few years, small loan company got fast development and flew out in great quantities. According to the statistics, up to2011year-ends, there are4282small loan companies in whole country. The loan balance is39.15billion and the whole year total amount adds to19.35billion. Also the employees add up to45thousand people. In view of the above situation, the establishment of small loan company is a new channel to solve this problem of short term capital. There is the characteristic of no mortgage and high risk for the small loan company, and meanwhile there is no mature mode to follow about how to develop the small loan company.So it is very important to perfect credit management mechanism of small loan company. In that case, that is the reason why I choose the topic about "Study into Sound Credit Management Mechanism of Small Loan Company". The author hopes that it is propitious to make the small company develop continually and steadily.First of all, by the credit management system, this paper elaborated the importance about how to perfect credit management mechanism of small loan company. Secondly, based on A small loan company’s situation, this paper analyzed the challenge to perfect credit management mechanism and the reason that why the present credit management is not fit very well. Thirdly, we could make credit management mechanism of small loan company sound, drawing lessons from a more typical mode of the small loan company from abroad. At last but not the lest, this paper introduced the strategy of credit management mechanism of small loan company and evaluated the level of small loan company’s risk control. The inadequate credibility and overdue bad debt are very serious. Small loan company should pay more attention to the credit guarantee in the future. The author Puts forward the feasibility and operability suggestion about how to Study into Sound Credit Management Mechanism of Small Loan Company.There are many new points and innovation in this thesis. Under the background that the external environment doesn’t have excellent credit system and law, according to my working experience for several years, the author had a foothold on the construction of the small loan company and drew lessons from abroad mode, then give some advice in perfecting credit management mechanism of small loan company. This advice includes the discriminator of credit risk, the punishment of laws and regulations for moral hazard and adverse selection, reputation grade point system and reputation early-warning mechanism etc. These suggestions not only have a possibility but also have maneuverability.