Research On Bank Financing Models Of SEMs

Although small and micro enterprises have become a strong driving force to the economic growth, the problem of financing still restricts the development of them. With the background of weak demand in foreign markets and serious inflation in domestic market, we think it’s very important for us to discuss the financing models for SMEs. In this article, we did comparative analysis of the multiple indexes of SME credit business, and on the basis of this, we drew some suggestion for solving SME financing problem.Firstly, we summarized the results of former research and concluded the characters and problems of SME financing.Secondly, we did a research on the status quo of SME financing problems. After giving a clear definition to the SMEs, we discussed the difficulties of SME financing and introduced the five main financing models nowadays, like UNPROFOR business model, franchisee model, relational credit model, supply chain financing model, circle credit model and so on. We compared the advantages and disadvantages of every model, and pointed out the future of SME financing model development.Thirdly, we studied a case of MSBC Shanghai S hardware market project. We processed a comparative research on the clients in the market on basis of general introduction of this project. We worked out the effects of indexes like general information, credit records, assets and liabilities, operation conditions on SME financing results.At last, we drew a conclusion of SME financing models, and presented feasible suggestion for SMEs to choose suitable financing model themselves in order to lower their cost and improve their efficiency. We also pointed out several important precautions for SMEs to better develop their production and operation, thus to make better contribution to national economic development.