The Empirical Study On Financing Of Textile And Garment SMEs

Since2008,the global financial crisis and the European debt crisis make the global economic recession. In the industrial manufacturing, consumer goods manufacturing industry, China’s textile and garment industry as a extroverted industry is facing serious challenge, the business environment of textile and garment enterprises is worse, financing problem is increasingly serious.The textile and apparel industry as a traditional pillar industry and an important livelihood industry of China’s national economy, played an important role in boom markets, expand exports, creating jobs, increasing farmers’ income and promote urbanization. The study of financing impact factors of textile and garment enterprises have great significance alleviate or solve the financing problems of textile and garment enterprises of Combined of theoretical analysis and empirical analysis to study the microscopic characteristics of the textile and the operating macro environment of garment enterprises and financing micro-influencing factors, the proposed method suitable for solving the problem of financing the textile and garment enterprises to better help the textile and garment enterprises smoothly through the difficulty time, and healthy development.On the basis of review of inland and foreign literature, in accordance with the structure of background-current situation-factors-suggestion, according to the idea of "raise questions-analysis problems-solve problems", firstly analyzed the operation and financing of the status quo of the textile and garment enterprises to find the problem. Followed by the use of columns associated table to cross-analyzed the relationship between the enterprise microscopic characteristics and corporate finance needs of the status quo and the difficulty of financing, followed by regression analysis to quantitatively determine the impact of factors of corporate finance, through the above analysis concluded:(1) At this stage, textile and garment enterprises profit decrease,by the combined effects of the international orders decrease, the costs of domestic labor rise, the price in price of raw material and the appreciation of the RMB exchange rate and other factors, orders showed small, fast and rush characters, capital requirements show single small, more often, needs urgent, risk characteristics;(2)Textile and garment enterprises financing difficulties at this stage. The deterioration of the operating environment squeeze corporate profit margins, impact corporate internal financing, the country’s financial system is not perfect, tight monetary policy exacerbates the financing difficulties of the textile and garment enterprises, working capital tight, resulting in daring not and can’t received the orders.(3)In Textile and garment SMEs,smaller companies more in urgent need of money; export-oriented enterprises compared to non-exporters, capital requirements less but demand more urgent, and financing more difficult; the degree of funds need and financing difficult of knitted or woven garments corporate is much bigger than spinning, weaving, dyeing and textile enterprises; enterprises whose innovative R&D investment little and lot need more money, and the profit and net profit significantly greater than the enterprise whose innovative R&D investment less; the companies whose business balance rate is10.0%-30.0%loan from financial institutions is very difficult;(4) Textile and clothing enterprises loading characteristics for small-scale enterprises, mainly private enterprises, the finished product manufacturers, mainly on behalf of the processed products and the export business model, corporate innovation and R&D investment was polarization trend, low-input and high-input significantly increased indicating that the number of firms of pure processing and tree brand on the rise, studies show that innovation and R&D companies have higher operating performance.(4) The main purpose of textile and garment enterprises financing is finance the working capital financing channels,mainly financing channel is bank loans and the financing subjects are banks and other small financing institutions; followed by relatives and friends,borrowing from internal workers and other non-formal financial institution,financing body are personal or corporate who are have popularity, geographical, kinship relation wish with SMEs, because of private lending is not up to standard and high financing costs, the textile and garment enterprises finance less from it;(5) Determined the influencing factors of textile and garment enterprises financing, firm size, firm growth rate, the enterprise value of asset-backed, corporate solvency and corporate financing capacity was significantly positively related to the enterprise financing ability;enterprise business mode and corporate profitability was significantly negative related to corporate financing capacity, the relationship of corporate R&D investment and corporate finance capabilities was not significant.Finally, on the basis of the above study, put forward count ermeasures and suggestions to solve the financing problems of China’s textile and garment enterprises from both government policy and the textile and garment enterprises innovation.