Research On The Loans Of Middle And Small Agricultural Enterprises

In the modern financial system, small and medium-sized enterprise basically can not make full use of the channel of direct financing becaus the weakness of themselves, loans become the main way to meet short-term liquidity and long-term investment needs. But traditionally, Chinese financial system is dominated by large commercial banks, small and medium-sized enterprises can get less support from the system of credit. Small and medium-sized agricultural enterprise is a superposition of the credit problem of small and medium-sized enterprises and agricultural enterprises. Especially from the view of agriculture, specificity of small agricultural enterprises is very strong, each enterprise is different from the geographical and cultural environment, the management of agricultural products and the industrial chain locations. In order to solve the credit problem of small and medium-sized agricultural enterprises under Chinese existing financial ecological environment, in addition to make full use of support conditions given by the policy, we have to study the credit problem according to the actual situation of the enterprise and the loan project, to explore how to achieve a win-win situation through cooperation between financial institutions and small and medium-sized agricultural enterprise. The study about small and medium-sized agricultural enterprises is rare from existing literature,it is related to the specific practice also.Firstly, we analyzed the status of middle and small sized agriculture enterprises loans based on the theory of the life cycle of enterprise financial and relationship lending, highlighting its special financing demand characteristics and the main credit risk. Secondly, we did an analysis on the case of J animal husbandry company in Henan province which do a long-term loan project. In the trend of the development of modern agriculture industrialization in China, we discussed an operation of a medium-sized dairy enterprises loans with the development of the regional economy, industry chain and other background. Based on summarizing the experiences, we argued that in order to solve the credit problem of middle and small sized agricultural enterprises in need, we have to start from two aspects of demand and supply of loans at the same time, we need improve scientific of management and decision-making of middle and small agricultural enterprises, but also require banks to strengthen the relations with industries, with a good intermediary support system.