China’s Small And Medium-sized Enterprise Credit Evaluations Based On AHP Method

With the development of China’s economy and the process of globalization, the small and medium-sized enterprises of China have more and more financing demands. However, there are so many reasons to cause the bank not to assess the credit of small and medium-sized enterprises exactly and thus restrict the financing development of these enterprises, including the lack of collateral, the lack of enough disclosure credit information, and the high cost of borrowing and so on. So it’s very important to design one credit evaluation method specifically for the financing of small and medium-sized enterprises. And the scientific method could greatly ease their financing problems.This paper includes the main research job based on lots of documents and data. The first, the paper elaborates the definition about the small and medium-sized enterprises and the development of them, and then describes their financing difficulties in detail. The second, the paper describes kinds of methods, including the traditional method of experts analysis, the Probit model and the Logit model based on the enterprises financial metrics, the modern credit risk assessment method based on a mathematical model and the method based on the machine learning and the artificial intelligence, and then, the paper also analyzes these methods and gives theirs strength and weakness. At last, through the analysis of the characteristics of these enterprises the paper gets an adaptive characteristic indexes system by the qualitative analysis method and the quantitative analysis method of the factor analysis, after that, the paper makes a point using the analytic hierarchy process method, short for AHP, to evaluate the credit rank of small and medium-sized enterprises. The effectiveness of this method also is verified by a case.The paper gives fourteen indexes that are used to evaluate the credit of rank of small and medium-sized enterprises. The indexes are scientific and practical, because they are based on the character of the small and medium-sized enterprises, for example, the first, the enterprises don’t have enough financial data; the second, the development of that enterprises is affected by the macro-economy; and the last, the innovation is the key of growing up for the small and medium-sized enterprises. The paper also gives every index the weight. So the conclusion of the paper could help to solve the problem of the financing difficulty.There are two innovative ideas in this paper. One is giving an adaptive characteristic indexes system after analyzing the characteristics of small and medium-sized enterprises, and the other is designing a specifically credit evaluation method and verifying its effectiveness. The special method could help the banks potential good credit clients with potential from lots of small and medium-sized enterprises. It will be good for development of the enterprises and the banks.