TherRsearchonChinese E-commercesmall Loan

With the rapid development of China’s economy and the constant expansion of the scale,the number of small and micro enterprises is increasing year by year. Nowadays, small micro enterprises have become the important lifeblood of the national economy. They are known as’the capillaries’of China’s economy. China’s small and micro enterprises have outstanding contribution to promote China’s economic development, optimize the economic structure, and alleviate the employment pressure. However, due to the unbalanced structure of China’s economic development and other issues, the development of small and micro enterprises initially faced many bottlenecks. The most difficult thing is the financing difficulties and high cost. China’s small and micro enterprises don’t pay attention to asset and have no collateral and even accompanied with asymmetric information. Especially lack of credit and other issues led to financing difficulties and high financing cost when they financing from traditional financial institutions. In recent years, with the development of China Network Information technology, the rapid growth of Internet users, the coming of the era of Big Data, the emergence of cloud computing technology, the popularity of social networks, and so on, the advanced technology provides new financing channels to help the small and micro enterprises solve the problems of financing difficulties, high financing cost that caused by information asymmetry, lack of credit, risk control and so on. Small and micro enterprises’financing problems and the development of the Internet creat a new model of small lending model--- E-commerce small loans. E-commerce is a new type of network financing, and the product of the Internet and financial industry development. Companies of E-commerce of small loan can speculate enterprise management status through their business information that accumulated in the electric business platform. They can make up small micro enterprises’ lacking of credit and information asymmetry. China’s E-commerce microfinance companies seize the long tail of customers, be based on large data and Internet technology. So they have established the unique risk management mechanism. This model effectively relieves the financing problem of small micro enterprise in our country, and catering to financial reformof the policy.This article takes Alibaba small loan as an example to analyze China’s E-commerce microfinance. First the article analyzes China’s E-commerce in general small loans through the micro level. In micro level, this paper introduces the definition of electric commercial microfinance, development background and current situation of the development. Then the article analysises the target customers, products, capital source, risk-control mechanism of E-commerce small loans.And then the author uses comparative analysis method to analysis the difference between Alibaba E-commerce small loan and traditional financial institutions to small loans and other Internet financial models from five aspects of the target customers, product types, interest rates, capital source risk-control mechanism. By comparing and summarizing, this paper gets the advantages and disadvantages of Alibaba E-commerce small loan. Based on the above analysis and combined with the current economic and social environment, the author provides some measures for the future development of E-commerce from two aspects: small small loan companies and government regulators.