| The private small and medium enterprises (SMEs) occupy an important position inChangshu economy as the most dynamic part. The development of private SMEs for thepromotion of economic and building a harmonious society has played a pivotal role.Meanwhile, bank loans on behalf of the indirect debt financing due to financingefficiency become main exogenous financing style. Through the analysis of the indirectdebt financing of private SMEs in Changshu, the author found that the access to bankcredit-based indirect debt financing is difficult while the influence of macroeconomicenvironment of economic downturn and the importance of securing the financing tosurvive development. Based on financing contract data of a bank in Changshu inDecember,312012, the author makes the empirical analysis using multiple regressions:there is ownership discrimination during indirect debt financing of private SMEs. Thefactors influence the indirect debt financing including: firm size, solvency, credit rating,whether to adopt the security pledge, mortgage, and joint liability guarantee and coreindustry properties. According to the multiple regression analysis, the private SMEsindirect debt financing difficulties are mainly from information asymmetry between thefinancial institutions and SMEs, as well as the impact of the macroeconomicenvironment downturn and the special operation characteristics. Finally, thecountermeasures to solve the dilemma of indirect debt financing of private SMEsconsist of: construct the perfect private SMEs; actively guide the establishment of SMEcredit evaluation system; vigorously develop the local SMEs banks and credit guaranteeinstitutions; improve core competitiveness of SMEs, innovate indirect debt financingsecured mode; legislate laws and regulations to standardize private lending channels and transform it to formal indirect debt financing; strengthen the protection of governmentdepartments in indirect debt financial. |
