The Research On Sales Contingent Claims For Innovative SMEs

With the rapid development of China’s economy, our country’s enterprise structure is gradually changing. By early labor-intensive enterprises mainly to the intensive enterprises dominated subsequently, now, small and medium-sized enterprises (SMEs) has become the main force of promoting China’s economic development. Many SMEs in the high technology and high risk areas, they represent the development direction of China’s economic future, therefore, we should support them, make it healthy and sustainable development. But since our country’s SMEs development time is short, and develop fast, therefore the demand for money as well as the lack of proper financing channel have become the factors to restrain the development of SMEs in our country at present, the difficult problem of SMEs finance is also popular in worldwide.The author thinks that the lack of appropriate financing products is the key to restrict development of SMEs. Common debt financing and equity financing have been proved having limitations in many ways, and are not very good to help SMEs solving the problem of financing. Therefore, the author attempts analyze the applicability of a new kind of products for innovative SMEs financing—Sales Contingent Claims(SCC) in China.SCC can be regarded as a kind of financial derivative products with characteristics of venture investment, it combines the characteristics of both debt financing and equity financing for SMEs which do not need to provide collaterals, what should they do is to make a percentage of profit made by putting finance capital into product project as the corresponding payments, and paid on a regular basis. But because of its high investment risk, it is hard to be traded on the open market, but can operate with the government support fund.At present, this kind of financing manner has not been widely used on a global scale, but in Europe and the United States and other developed countries there have been many successful cases, and relevant theories are more mature. The purpose of this paper is to introduce the financing products into China, combined with China’s actual national conditions and the characteristics of the SMEs, make it more suitable for SMEs financing in our country, and help SMEs to solve the problem of financing difficulties, so as to further promote the economic development of our country.