Study On Credit Evaluation Its Application Of Small And Medium-sized Enterprises Based Social Capital

Since 1978, the road of reformation in our country has gone through the nearly four decades.The small and medium enterprises has also received the considerable development. Up to the year of the 2015, the quantity of Small Medium Enterprises(SMEs) in China has already exceeded the number of 50 million which occupied more than 99 percents shares on Chinese market. According to the analysis of some statistics, 75% of the employment opportunities are provided by small and medium enterprises in the city and towns of the China. The SMEs are also responsible for more than half of the tax share which the SMEs has been proved with data that the SMEs has played a crucial role to the economic development in our county. However, the difficulties in financing has been a constraint for SMEs development and growth. To solve this problem, the Chinese government, universities and research institutions have made attempts.According to the status of our country, at a later period of time, commercial banks will be the main source of funding for SMEs. Commercial bank lending to the SME requirement is to have a higher credit level,while the SMEs in China due to structural imperfections, low financial management level and the lack of management experience which leads to the problem of the bottleneck of commercial bank loans. It is necessary to solve the problem which break the bottleneck and to improve the credit level of the SMEs.It is not only from the aspect of financial data, but also from the perspective of social capital to study how to achieve a comprehensive evaluation of the enterprise and to build a bridge between SMEs and bank credit. Focusing on future growth capacity of SMEs seems more important than staying the one-sided look at SMEs in the present stage of financial data and the status of if the the enterprises have guarantee mortgage.In this paper, the problem of SME credit evaluation firstly defines the concepts of the SME credit assessment. We established the basic theoretical framework which discussed the main contents include credit rating. This paper analyze the reason of the social capital division which based on the definitions of the SME credit evaluation. To be specific, this paper will place the SMEs to the external social environment and use the three aspects of enterprise social capability,financial capability and entrepreneurs capability to establish the corresponding indicators of the credit evaluation. Then, social capital is formed by external and internal financial data of SME credit assessment impact factor and the use of factor analysis which establish the SME credit scoring model level. Using the level of credit scoring model which will provide a reference for the study of the SME Credit Evaluation level and will help the Small Medium Enterprises to fully identify themselves, grow and develop.