The Research On SME Credit Financing Difficulties In China

In the socialist market economy, the SME is full of vitality and energy.Not only solve the employment problem of the majority of rural surplus labor, and active the market economy,To promote the products of technological progress, create more social welfare, and to promote the adjustment of industrial structure, in narrowing the income gap between urban and rural areas, to prevent the polarization between the rich and the poor.SMEs in China lack of funds, the mismatch between the financing difficulties of the present situation and its important role in the national economy has been a historic problem.Insufficient funds become a bottleneck restricting the development of small and medium-sized enterprises, the most important issue is to address the financing difficulties of SMEs development.Demonstrates the contribution of SMEs in the national economy and an important position by the number of small and medium enterprises, the total assets, tax contribution, number of employees, as well as the total profit of the relative value and absolute value.Elaborate analysis of the development of small and medium-sized enterprises bottleneck lies in the financing difficulties.Financing refers to funding facility, is the process of reconfiguration of the funds in the capital markets, a different way of financing constitutes a financing system including endogenous financing and exogenous financing, SME access to finance mainly by exogenous financing.In financial markets, the credit means borrowing enterprises trust to fulfill obligations made in accordance with the credit contract.Credit as a financing condition, and erected a bridge between capital suppliers and demand, and promote the realization of financing.he accompanying credit is credit risk, in order to control credit risk, the credit must assets as security, and effective means of credit identification.The financing costs are an important factor to consider in the enterprises to choose the mode of financing.Issued stocks and corporate bonds not only need high requires,and cumbersome procedure of take long time.The bank credit facility is relatively flexible, low-cost financing.Credit bond is the connection between the main body of credit facility, the credit can not effectively identify and poor credit will directly hinder the conduct of the credit facility.The characteristics of SMEs and the one-sided bank credit rating system is an important reason for the credit can not effectively identify.Credit identification difficulties through the bank size discrimination and credit rationing conduction, leading to the SME credit financing difficulties.On the other hand, most of the SMEs in the existence of the problem of insufficient credit capacity.corporate credit enhancement through their own efforts in the short-term is impossible, only can look for ways to the outside world to supplement credit. Finally, for the two reasons of credit recognition difficulties and poor credit,proposed to strengthen credit identification, pass on the value of the credit and innovative locking way.This paper attempts to on the basis of existing research of comprehensive analysis,based on the characteristics of SMEs,from bank credit,analyze the reasons of SME debt financing difficulties.From credit conditions,explore the constitutes of credit system,imperfect credit system led to the credit obstacles,analysis of credit barrier formation mechanism,reverse thrust credit system defects,to propose ways to improve the credit system.