Research On Financial Storage Model Of SME’s Financing Issue

In current China, SMEs are playing important part in social activities and economy. However, they are facing with the same big problem:the financing difficulty. Therefore, finding a proper solution to the financing difficulty should be the major issues for our financial researchers. SMEs’ inherent flaws should be the lack of real estate mortgage which caused cooperation gap between banks and SMEs.However, there is plenty of movable property storing in the warehouse of SMEs which can be used as collaterals.Financial storage is an important breakthrough to solve the financing problem of SMEs. It makes the liquid asset more effectively and help work out the problem simutaneouslyFinancial storage is a professional service in the financial industry. The third-party provides supervisory service to help banks control the collateral of lending corporate. As a matter of fact, financial storage is an inventive innovation of commercial bank’s financial service product. It help SMEs improve cash flow efficiently and resolve cash flow shortage and difficulty in financing. besides, financial storage boosts the profitability of banks and other financial institutions. There is a long history of development of financial storage in American, financial storage emergence is primarily in real commercial practice and then in theory.It have many and varied forms, In our country, we started the business in90’s and lag behind others. However, there is a huge market demand in financial storage business and we still have a way to go.This paper comprehensively explain the game tree and characteristics of current business models and selected a real case to introduce. By analyzing strength and weaknesses, the author points out that in the existing financial storage model there still lacks inventiveness. Finally, the author put forward some proposal for the improvement and innovative direction of financial storage. In China, financial storage expansion is still in exploration and the strategy planning is also limited. However, the promotion of domestic financial storage reforms will still go on. With time goes on and the development of practices,financial storage will have a bright future.