The Study On The Development Of The Technology-based Sme Loan Guarantee Insurance

By now, China’s economy has entered the new normal stage of development. At this stage, accelerating the development of technology-based SMEs can not only promote industrial upgrading, but also create new economic growth point. As technology-based SMEs are characterized with strong stage venture, high-risk financing, and heavy dependent on capital financing, they are facing both high cost and difficulties in financing, limiting the development and growth of enterprises. Under this background, technology-based SME loan guarantee insurance with government, bank, insurance multi-side participation and venture share emerges as the times require. Due to the function of upgrading credit rating, the new and developing loan guarantee insurance alleviated the problem of technology-based SMEs financing to a large extent and promoted their development. But there are still many challenges to be addressed because technology-based SME loan guarantee insurance’s development mechanism is not perfect yet.This paper is focused on the applications of loan guarantee insurance in technology-based SMEs financing. Firstly, it introduces related concepts, theories and the mutual relations among them, including the characteristics of technology-based SMEs’ financing based on the life-cycle theory, the characteristics of loan guarantee insurance and the necessity of introducing the loan guarantee insurance to the process of technology-based SMEs financing. Secondly, the paper researches on the current situation of the technology-based SME loan guarantee insurance in our country from three aspects, that is business mode, business process and operation effect. According to the research, the main factors which restrict the development of technology-based SME loan guarantee insurance in our country include moral hazards of the participants, business risks in the course of external operation and the unsoundness of Social credit system. This is the key part of this paper. Thirdly, this article aims to provide some suggestion to solve the problems by reference to the successful experience of SME credit guarantee insurance from Japan, U.S. and Korea. Finally, this paper will put forward opinions and suggestions to the technology-based SME loan guarantee insurance from the perfection of related legal system, improvement of pricing mechanism, development of risk control system, construction of social credit system and the progress of third-party e-commerce platform.