Research On The Credit Evaluation Indexes System Of Micro-small-and-medium-sized Enterprises

Micro-small-and-medium-sized enterprises (MSMSE) have played animportant role in China’s economic development and social stability. But in recentyears, the problem of financing difficulties of micro-small-and-medium-sizedenterprise (FDOME) is popular; it plagued many experts, scholars, governmentagencies and business owners. The state and financial institutions issued a lot ofpolicy laws and regulations about the problem, but FDOME is still an importantproblem to settle.MSMSEs are not well known and have fewer funds, so it is more difficult torely on internal financing or through capital market issue stock, bonds. This makesMSMSEs is more likely (than large enterprises) to rely on the indirect financingways like commercial bank loans as the main way of financing. At present, it is hardfor MSMSE to loan from the bank, so there is a big funding gap during itsdevelopment. One of the reasons that cause this situation is that MSMSEs do nothave a robust information disclosure system, their historical financial data is notcomplete, and balance of payments is not transparent... MSMSE credit rating needsto be investigated before they get loans from commercial banks, which is animportant basis for banks to determine to loan or not. But credit rating index used bythe commercial banks is designed for large enterprises, it can’t accurately reflect theactual state and development prospect of MSMSEs, therefore, the irrational andinapplicable apply of credit rating index system on MSMSEs’financing and loan hasadverse impact on them. So, to establish a real effective credit rating index system designed for MSMSEs is an important way to solve the problem of FDOME.The paper contains six chapters. The main content of each chapter is asfollows:The1st chapter is introduction. Mainly discusses the background, significanceof this research and research methods for the MSMSE credit rating and theinnovation of this paper. At the same time, this paper introduces research status ofcredit ratings from both domestic and international.The2nd Chapter is about the theoretical basis for MSMSE credit rating,mainly introduces the concepts, characteristics, functions and rating process of theenterprise credit rating, it also presents three main methods of the enterprise creditrating. This chapter also defines MSMSE, explains the existing problems of MSMSEcredit rating from the view of commercial banks.The3rd chapter is about the construction of MSMSE credit rating indexsystem, elaborates the credit rating index, choice of methods, balance of weight,evaluation standards and credit rating for MSMSE.The4th chapter is the empirical analysis part, mainly tests the practicality ofthe model we constructed above by applying it to the analysis of the enterprise creditrating.The5th chapter analyzes internal and external conditions of when thecommercial banks could use this credit rating index system, it presents suggestionsand thoughts about MSMSE credit rating from the author, it also discusses thedeficiency of this article.