Risk Management Study On The Small Loan Service To Livestock Farmers Of Company A

With the development of China economy, the capital flow becomes more and more frequent. At present, however, small and medium-size enterprises (herein after referred to as SMEs) face challenges, on one hand, the rapid development of SMEs calls for great capital support, while on the other hand, it's very difficult for them to finance from commercial banks in order to ensure long-term development. The capital shortage is even more common for livestock farmers. Based on this situation, the government has put forward a series of policies to encourage the development of small loan companies to develop SMEs. Company A was established under such circumstance, aiming to serve farmers, agriculture and rural areas.In this paper, we'll focus on study how the company A provides good loan services to clients, how to prevent loan risk and how to monitor possible risk subsequent to loans.In part one, we make a brief introduction to the background, significance, research ideas and methods a long with the main difficulties of small loans. Part two and part three are the most important sections of this case. Take company A as an example, we first analyze the basic information of this small loans company as well as the investigation prior to loans, the lending process, the follow-up procedure and risk prevention. Then, we explain the necessities of risk management based on related theories of small loan. In part four, using company A's small loans to livestock farmers as the study case, we put forward solutions on how to reduce lending risks to ensure the sustainable development of such enterprises.