Research On Innovative Financing Model Of Micro-loan Companies In China

Microfinance is an important part of China’s small and micro financial services system. As of the end of December 2013, there were 7,839 micro-loan companies, and these companies have loaned 819.1 billion RMB in all in 2013. Compared with the growth in the number of Micro-loan companies, the growth rate of average loan has been relatively slow.The lack of fund constraints the development of some excellent micro-loan companies, which also affected the financing of small and micro enterprises. At the same time, regulatory agencies, local governments and micro-loan companies in recent years have made attempts and efforts in this regard, which also have created some ways of solving financing problems. Through a review of domestic micro-loan companies’development process, this article summarized the characteristics of small and micro financing model, analyzed current problems of micro-loan companies financing model, and provided the domestic financing innovation model case study for the sustainable development of micro-loan companies.On research of innovation ways of solving micro-loan financing problems, the article firstly reviewed domestic microfinance companies’ development process, and then analyzed the role of microfinance companies to locate legal and economic attributes of micro-loan companies in our financial system. Orientated on "non-absorbing deposit lending institutions", micro-loan companies’basic financing channels are mainly equity financing, bank loans and donated funds.Secondly, the article analized the status of domestic micro-loan companies’financing model, and explained the root and impact of the financing problem, which found two reasons of financing problems:firstly, because of the current credit and economic conditions, the policy on financing constraints are more stringent in order to prevent risks;secondly, because of blurred status of micro-loan companies, thus lead to limited financing channels.Again, by summarizing the financing experience of foreign micro-loan institutions, the article analyzed the feasibility of innovative financing channels, which conclued that the construction of supporting system is the foundation of solving financing problems. Therefore, based on the above analysis, the article proposed appropriate policy recommendations on promotion of micro-loan companies innovative financing model.