The Application And Study Of The Joint Guaranteed Loan Mode In The Smes In CHINA

SMEs are the foundation of the national economy, they are the most active and promising economic groups. SMEs in China have played a significant role in promoting China’s economic growth, increasing employment, promoting reform and innovation and making the national economy active. However, since the financial crisis broke out in 2008, SMEs are facing with unprecedented challenges including serious financing problems. Funding constraints becomes the primary factor that restricting the development of SMEs.In recent years, as the group financing way are getting more and more popular, Alibaba and China Construction Bank jointly developed the network joint guarantee loan as a new financing path for SMEs. To solve SMEs’financing difficulties, the network guaranteed loans mode makes fully use of network information disclosure function to overcome SMEs’problems, such as most of SMEs are too small to get loans from banks and they’re usually lack of mortgage collateral. This mode also resolves the credit risk of banks, so that SMEs and banks can achieve "win-win" situation. There are certain practical significance to study the operational processes and internal mechanism of this emerging network guaranteed loans financing mode, exploring the reasons for its success.This paper describes the present development of SMEs in detail at first, digging the reasons of SMEs’financing problem to reveal the necessity of introducing the network guaranteed loans mode to help. Then this paper proves the network guaranteed loans mode is feasible to solve SMEs’financing problem. Subsequently, this paper makes detailed analysis of Alibaba network guaranteed loans mode, including the success of 24 SMEs and 5 "Commonwealth"s. This elaborates advantages of the network guaranteed loans mode in risk controlling and system designing. Finally, the paper puts forward some improvement and promotion recommendations for the network guaranteed loans mode.