The Research On The Credit Rating Of Small And Medium Enterprises

It has been a quite hot topic that SMEs, which is short for small and medium-sized enterprises, find it hard to raise fund, especially during this period in China. While the economic transformation is so rapid now, this finance problem is so important that we have to solve it as soon as possible. And that just what this paper stood on and in the following chapters, it would show you how to soft the financial issue for SMEs which is actually depending on the current situation.This paper focused on the credit rating of SMEs in order to pull them out of the financial problem. Only if the system of the whole credit rating is completed, SMEs can have financial supports as large enterprises get. This system will help the enterprises grow up, inspire the investors to be interested in investment, and finally improve the national economy growing in a long way. However, it will not be done in one day. But this paper virtually tried to find a way to help SMEs get valued quickly which will match the purpose of this paper---to raise fund for SMEs.In all, this paper was based on the concepts of credit rating, analyzed the methods both qualitatively and quantitatively, and pointed to the results of quantitative analysis in the end. Particularly, this credit rating for SMEs used an effective sample through various data, linked its rating data to its financial data, and finally created discriminant functions among different industries.At the end of this paper, these discriminant function model was to the extent proved by the history data and the results showed the weakness and limitations of this model, which was excepted to improve it in the future.