Study On Smes Collection Notes Financing Model

Small and medium-sized enterprises play a very important role in our national economy.But financing difficulty is an important factor affecting the development of SMEs in china. Ithas become a hot issue of concern to all sectors of society to solve the financing problem ofSMEs. Chinese government is guiding financial innovation actively and has ormulate relevantpolicies and regulations in order to provide a good financing environment for SMEs. To try tofigure out the ways of solving the financing problem of SMEs, scholars have done lots ofresearch about enterprise financing based on cluster financing theory and financial innovationtheory. Under this background, Collection Notes was bone in Inter-Bank Bond Market, in2009.The SMEs Collection Notes have received extensive attention from all sectors of society.It is considered to be the effective way to solve the financing difficulties of SMEs in china.Collection Notes break the situation of only large enterprises could issue Enterprise Bonds inChina. It can improve the market’s recognition by collecting Several SMEs, unifing CreditEnhancement and producting design. Collection Notes have showed a good momentum ofdevelopment in past three years and has solved fund demand of more than RMB22billion.Although the Collection Notes provide a new way to resolve the SMEs’ financing problem,there is a dilemma in reality, especially the Credit Enhancement problem. So it is necessaryfor SMEs to build Collection Notes Financing Model based on Credit Enhancementangle.This paper is aimed to provide theoretical basis and practical guidance for this newfinancing instrument.Firstly, this paper has done a systematic statistical analysis on financing situation ofCollection Notes.Produced background and financing characteristics of collection Notes areanalyzed from theory aspect and reality demand. Credit Enhancement is a crucial factor forCollection Notes is founded. Secondly, from Contrasting between P-CBO financing mode inSouth Korea and SMEs collection notes in china,this paper finds that it is in common thatP-CBO and Collection Notes on some aspects. Therefore, this paper constructed a CollectionNotes Financing Model based on credit enhancement angle by studing the experiences ofP-CBO. Thirdly, this paper researches on there essential problems by using Methods of CreditRisk. The first promblem is how to select the proper enterprises, another is how to enhancecredit, and the last is how to determine the pricing of Collection Notes. Finally, this paperpromotes policy recommendations on promoting SMEs Collection Notes Financing Modelbased on Credit Enhancement angle.