The Analysis And Realistic Choice Of China's SME Financing

Over the years,SMEs occupy an important position in the national economy,not only make contribution to China's economic development,but also solve our employment problems.However,the embarrassing situation of SMEs in financing has no significant improvement,and the development of SMEs has been hampered by the financing difficulties which is become the shackle of socio-economic development and optimization of industrial structure.Previously,the government departments took a number of financial measures to improve the financing difficulties of SMEs,but with little success,SMEs' satisfaction degree of credit is still low.Especially under the impact of the 2008 financial crisis on the real economy,the financing problem of SMEs is even more difficult.financing problem is become a global problem,and it has been concerned widespread,including academia,financial institutions,businesses and government departments,and they are actively exploring of theory and trying in search of an effective way to solve this problem.November 26,2009,the first collection notes for SMEs was successfully issued in the inter-bank bond market,opening up a new path for SMEs' debt financing.Because high requirements need to met for SMEs in issuing corporate bonds,but it's difficult for SMEs to meet the requirements,so the usually way they use to raise funds by borrowing from banks.The low threshold and the advantage of low interest rates of collection notes not only help SMEs to get rid of the plight of too much reliance on bank loans in financing,but also reduce financing costs.The collection notes as a new financing tool for SMEs,showing a good trend of development,but is still not perfect,so it's necessary to conduct in-depth study of this financing method to find out the solution.Based on the status of the SMEs financing difficulties,analyzing causes of the SMEs financing difficulties,include the enterprise and financial institutions.The financing problem of SMEs had a great influence on society and businesses.The method for SMEs to use is rare although the financing methods are more.This article use comparative analysis and case analysis compared collection notes with other financing methods to analyze the strengths and weaknesses,and analyzed the first collection notes——Shouguang eight SMEs effectiveness of bonds issue,give some suggestions on collection notes' current issue.The financing difficulties of SMEs would like to take this can be helpful so that more SMEs to participate in to one.However,due to the limited level of me,there are some drawbacks in this article.Not only a thorough analysis of the causes and effects of financing for SMEs,as well as in the comparison of collection notes and other financing methods,selected only three means of financing,not cover all the aspects.