The Research On Relationship Financing Of SMES

Because of the huge number, flexible mode of operation, as well as fast technicalinnovation, small and medium-sized enterprises (SMEs) have turned to be the strongpower to the Economic development. According to the survey, SMEs have provided themost jobs in the economic filed, which is the country’s main source of tax, and at the sametime they also are the enterprise groups with most frequent technical innovation. Therefore,the development of the small and medium-sized enterprises is directly related to thenational economic development. But SMEs may encounter many obstacles in the processof development, of which the capital obstacle is the chief one.Their riseing are facing thepredicament of the shortage of funds. However, thanks to the high accessing system of ourcountry’s securities market, whenever the problem of funds cannot be solved by theinternal financing enterprises, applying for a loan from the bank and other financialinstitutions has become the first choice to solve financing problems of them. Because ofthe small scale, high management risk, the lack of good credit, and information asymmetry,the banks, as the "artificial person of reason", are unwilling loan to small and mediumenterprises, especially when the banks’ capital size is fixed, they often take credit rationingdiesel to enterprises, which has serious limitations for the development of them. In recentyears, although the rise of relationship financing has contributed to the relief of financingproblems to small and medium-sized enterprises to some degree, still the problem has notbeen solved radically.This paper tries to create a stable, feasible financing relationship through the dynamicgame theory method which is going to establish a model of a bank, the core enterprises,and small and medium-sized enterprises relating to the core enterprise with theoreticalanalysis. In the financing relationship, the banks play the role of taking the informationflow of a large number of small and medium-sized enterprises in the industry chain as abasis for decision-making rather than collecting information by traditional financingone-on-one way with them. Through the way above we can reduce the costs of bankinformation acquisition, and the core enterprises provide information flow to the banks to get the favorable interest rate. Therefore, small and medium-sized enterprises obtain thefunds they need. At the same time, in order to keep the cooperation relationship with thecore enterprises, the banks will choose projects of stabile earnings and small risk so thatthey can alleviate the possibility of producing "moral hazard" by enterprises.It emphasizedthat the government should clear property rights system in formulation of relationalfinancing policy and ease the control to financial institutions and interest rate to formulatethe relevant policies for small and medium-sized enterprises and strengthen theinformation disclosure system, and then establish the orderly market competition order.Financial institutions shall take measures to strengthen the personnel training, guaranteethe smooth flow of information, and put an end to the bank’s internal personnel’s jointcheat with the enterprise personnel, so as to ensure that the business weeds out in a marketfull of the competition, and finally, achieve the purpose of promoting the development ofthe small and medium-sized enterprises.