Research On The Private Financing Risks In The Small And Medium Real Estate Company

The number of small and medium real estate enterprises accounts for merely90%in China’s real estate market. They contribute to satisfying diversified consumer needs, creating social wealth and raising the employment rate etc. But they are facing more challenges in financing by traditional channels than giant industry players, due to the high risk of real estate industry, lacking of scale and anti-risk capacity. In order to survive and thrive in the complex business environment, small and medium real estate enterprises are taking Private Equity (PE) as a new approach to finance.In this article, firstly, we will use SWOT analysis to evaluate the private financing of small and medium real estate enterprises based on the development of PE and the comparison between several major types of finance. Secondly, we will use fuzzy comprehensive evaluation method, yaahp Software and related data we have collected from small and medium real estate enterprises, to assess the risk indicators which the small and medium real estate enterprises will involve in private financing. Finally, it follows several solutions to the studies of current situation and practices.