A Study On The Credit Risk Of SMEs Finance Lease Of China

According to statistics, our country’s SMEs contribute 65% of GDP and 75% of employment in the lastest 2014. It can clearly be seen that SMEs play an important role in promoting the development of China’s economic. However, the problem of financing difficulties for SMEs can not be well solved and it has become the factor which can restrict SMEs’ development. Theoretically, finance leasing can not only satisfy SMEs’needs for funds, but also has the advantages of low financing costs, simple procedures, promoting industrial upgrading and so on. From that we can see, finance leasing is an effective way to solve the problem of financing difficulties of SMEs. From a practical point of view, the scale of fiance leasing has grown to 3.2 billion, and the scale of SMEs fiance leasing grows fastest. With the rapid development of SMEs fiance lease, some financial leasing companies are confronted with the problem of cash flow, and some of them even face the risk of closing down. Therefore, it is meaningful to study the credit risk of SMEs finance lease as it grows rapidly.In our country, the study of finance leasing and the credit risk of SMEs is mature. But the study on the credit risk of SMEs finance lease is not common. First of all, this article will compare SMEs finance lease and other financing ways of SMEs, showing the unique advantages of finance lease. It also put forward the risk of SMEs finance lease, especially the credit risk. Secondly, it analyses the factors which will effect the credit risk overall in a multi-angle way, such as the counterparty’s performance capabilities and performance willings of finance lease company and SMEs’financial status and production operations. After the overall analyse of the factors that effect the credit risk, it makes an example to certificate the importance of them.Finally, based on the overall analyse of the credit risk of SMEs finance lease, this article puts forward some countermeasures to reduce the credit risk that financial leasing companies faces, such as the guarant system, factoring system, the Securitization of financing lease’s assets and so on. Managing the credit risk of SMEs finance lease ensures the smooth conduct of SMEs finance leasing and relieves SMEs’stress of financing.