Research On Structured Financing Feasibility Of Technology-based SMEs

Technology-based SMEs have become an important part of our national economy, which depends on its outstanding achievement for social wealth, full employment, technological progress and optimization of industrial structure. In spite of this, the financing problem is still a "bottleneck" that restricts the health development of technology-based SMEs. The main reasons are due to our market economic system and imperfect financial market.In recent years, we have achieved great progress on dealing with financing problems of technology-based SMEs. It works well both on theoretical research and practical experience. Different from other general enterprises, the proportion of intangible assets is larger in the asset structure of technology-based SMEs. What’s more, SMEs have a low degree of dependence on natural tesources, though meanwhile, they have huge investment demand. So the financing problem of technology-based SMEs is the key to their healthy and rapid growth. But what is very worrying is the serious gap existed in endogenous financing or exogenous financing such as bank loans, bonds and stocks. We have to admit that this traditional financing pattern can’t completely solve the financing problem of technology-based SMEs. So based on the innovational idea of financial engineering, structured finance can solve difficult financing issues.As the main form of structured finance, securitization has developed rapidly in the field of investment and has widely applied in housing mortgage loans, banks non-performing assets, large-scale infrastructure construction and other fields. Now people pay much attention on how to make use of the structured finance of technology-based SMEs to promote scientific and technological innovation or financial development. Based on this research approach, this article analyze the structured finance of technology-based SMEs, which aims on improving the existing theoretical research and providing theoretical support for technology-based SMEs financing.This article can be divided into four parts. The first part includes chapter one and chapter two. Chapter one is the introduction that mainly introduces topic, background, research significance, research method, and structure arrangement and innovation points. Chapter two is the literature review that mainly research on the reason for enterprise financing problem, the methods for financing problem and securitization. The second part is the summary of technology-based SMEs. According to present situation of enterprise financing, the article concludes that we can’t completely solve the financing problem of existing enterprise, only through traditional financing methods. Thus enterprises need to learn from the financial innovative instrument, which is called structured finance. The third part is the feasibility analysis of the structured finance for technology-based SMEs in China. Based on theoretical research, basic situation in our country and financing cost and benefit aspects, the article carries out the basic reality condition of structured finance for technology-based SMEs. The fourth part introduces the structured finance for intellectual property rights and shows the main participants as well as the basic operation process in securitization, which based on the characteristics of technology-based SMEs.