Analysis Of Influencing Factors Of Private SMEs’ Bank Financing

Since the reform and opening up, the private economy has played an increasingly important role in the national economy. In China, most of the private enterprises are SMEs. But lacing in funds is the main problem which stops the private SMEs from improving themselves. Because of low interest rate and other advantages, bank financing has become the best choice of enterprise. But information asymmetry in market environment stops banks lending money to private SMEs. Both external factors and internal factors lead to such situation. It seems internal factor is the important one.Responding to this current situation, we absorb the effective researching methods and analytical thoughts of credit rationing to study internal influencing factors of private SMEs’ bank financing. And then, we gain some helpful conclusions. Firstly, this paper coordinates the present study of financing for the enterprises. It comes to the conclusion:enterprises’own characteristics do have influence on bank financing. Secondly, based on the comprehensive model, establish loan amount and collateral value as bank financing conditions to analyze the effect of credit rating, information transparency and borrowing time on bank financing. Finally, compared with listed state-owned SMEs, analyze the2010financial data on private enterprise of Shenzhen SME board.It comes to the conclusions:enterprises’own characteristics do have significant influence on bank financing and different factors have different impact on short-term and long-term loans. Compared to other SMEs, private SMEs’ disadvantage reflected in long-term loans, not the short one. To promote more private SMEs obtain bank lending, enterprises need a series of change to reach banks’request, and government need to perfect financial system and give private SMEs more long-term capital support.