Study On Internet Finance Innovating Financing Model Of Small & Micro Businesses

For an enterprise, capital is the blood flowing in blood vessels. Small and micro businesses as the capillaries of our national economy, is an important part of the socialist market economy, playing an irreplaceable important role in Chinese economic development and social progress. However, the plight of financing difficulty has been restricting the development of small and micro businesses, being a “blade” hanged on the head of small and micro businesses. At the same time, because of the asymmetric information problem, small and micro businesses lacking of collateral, the traditional financing model can’t solve the problem.The emergence and development of Internet Finance will become a new way to solve the financing problem of small and micro businesses. Internet Finance is the product of the Internet and finance continuously coupled, having information, cost, efficiency and other inherent advantages in the service of small and micro businesses. As the pioneer in the field of Internet Finance and the leader in the field of e-commerce, Alibaba has carried on the active exploration and innovation in financial services, achieved fruitful results. Based on this background, on June 8,2010, Alibaba Group set up Alibaba microfinance company.But, at present research on this new business model is less and there is no systematic theory. How is the Operational mechanism of this business model and what are characteristics and risk are problems worth studying. Therefore, this thesis attempts to explore these issues through case studies.This paper firstly introduces the traditional financing model of small and micro businesses. Then the paper analyzes several business models of Internet Finance supporting to small and micro businesses, and strives to analyze model in the condition of introducing the effort of electric business platform. Then the paper elaborates the business model, product type, credit financing performance of Ali microfinance company. Then the article summarizes the risks of Internet Finance and puts forward corresponding countermeasures and suggestions. Finally, draw the conclusion on the basis of summing up the paper: Internet Finance solves the financing problem of small and micro businesses effectively, Ali microfinance creates a new model of micro credit and provides a reference for the innovation of China’s financial model. Also the development prospect of Internet Finance and Ali microfinance company is discussed.