Research On Financing Guarantee Of Small And Micro Businesses

From theoretical analysis,financing guarantee can improve the smallµenterprise credit,thus reduce the risk of loan from the commercial banks and otherfinancial institutions,so it can effectively resolve the problem of financing for smallµ enterprise.However,through the analysis of questionnaire,interview andrecords on the current situation of Financing Guarantee of smallµ enterprise,current operating state on services and management of guarantee companies andcommercial banks,as well as relevant government departments,the concernedinvestigation on Putian city reveals there existing huge gap between theory and realityon Financing Guarantee.This paper carried thorough analysis on the reasons thatfinancing guarantee patterns failed to effectively resolve the smallµ enterprisefinancing problems.Firstly,guarantee agencies have lots of problems.For instance,theoperation is ill-formed,the management tend to under gauge,risk transfer mechanismof guarantee is not sound,and have little communication with banks.Secondly,smallµ enterprise has its inherent problems.Besides,commercial bank choose toapply credit rationing policy in order to pursue profits, which brings risk.Thirdly,support service from relevant government departments does not reach the designatedposition.Last but not least,there lacks of intermediary institutions in the financingguarantee market.According to relevant theory and above current situation analysis,combined withthe experience of countries and regions from domestic and abroad,this paper putforward some targeted countermeasures and suggestions.It recommends by deepeningthe reform of internal guarantee industry, optimizing the guarantee companydevelopment mechanism as well as the external environment to make the financingguarantee the system functioning well.We expect the financing guarantee mode playsan important role in alleviating financing problems of the smallµ enterprise infuture,and promote the smallµ enterprises heading for a road with sound andrapid development,thus give impetus to the economic for a rapid development.