Research On SMEs Multi-channels Equtiy Financing

SEMs is an vital component in the national economy, playing an important role in contributing GDP, increasing employment-rat, science and technology innovation as well as other aspect, which can not be ignored. Because of shorter experience in our country, SEMs have less supporting service mechcian, expecially in finacing SMEs. It is always made the SMEs facing difficulties in financing, bad healthy and unstable finacing relationship as well as narrow channels for financing that commercial bank in China’s dominated the financial market and the SMEs always being regarded as supplement to the market economy. For long term, the credit evaluation system in China is not enough perfect, the bank denied loans to SMEs, and unreasonable demanded to provide collateral, which made the relationship between bank and SMEs worse. Base on that, the paper points that the availability is the key point to determine the financing order. Maybe the PE is a suitable way to get financing for SMEs, under the circumstance of hard to obtain debt from bank and harder IPO.The theory and partice proved that PE is a financing method which can meet the SMEs’ growth and innovation demand. On the basis of induction and summary, the paper present that the SMEs could get the PE financing to solve the puzzle, meanwhile the paper analizes the possibility from debt to equity.The paper indicates the research background and purpose in the beginning of the article, reviews researches on SMEs financing both foreign and domestic, and generally describes the situation of SMEs financing in China. Then based on the domestic SMEs financing situation, the paper analyzes and discusses the financing model shift from debt to equity, meanwhile, a real case shows that the instability of debt financing as well as the effect on the enterprise development when it transformed from debt finacing into equity financing. The last, the paper provides SMEs equity financing various channels and mearsures, and declares that the equity financing is an effective and available channel for SMEs.