Research On The Problems And Solutions On Loans For Small-and-medium Textile Enterprises In Changle City

Small-and-medium enterprises(SMEs)are an important part of the modern economy and the most active part of the national economy.They are large in number and act as carriers to absorb employment.Their development is mainly based on self-accumulation and self-financing with high internal financing.The simple internal financing has been unable to meet the needs of the development of these SMEs and the reliance on the external financing is on the increase.While external financing is becoming increasingly difficult and the bank loan becomes the main channel of the external financing for SMEs.Due to the economic downturn and shrinking demands,the operational risks of SMEs are increasing.Coupled with insufficient information disclosure,the credit rating for SMEs is not high.The revenues and the costs of bank loans to SMEs do no match and SME loans are classified as high risk.Based on this background and by taking the textile industry as an example,the paper discusses the problem of SME financing loans for further exploring the theoretical and practical significance for the development of SMEs.The paper takes textile SMEs in Changle as the research subject.Through the questionnaire and in-depth interviews,the paper analyzes the development of Changle textile industry and bank loans of the surveyed SMEs to find out the present situation and problems/reasons of SMEs in the said the industry.The suggestions put forward aim to further develop SMEs in Changle textile industry and to develop SMEs as a whole.The paper is divided into following 6 parts.The first part is the introduction.It introduces the purpose and significance of this research,the research objectives and contents,research methods,and technical route.The second part is literature review.The paper describes the current situation and existing problems of China textile industry,the difficulties and causes of SME loans,and the related theories and views home and abroad.The third part describes the development of the textile industry in Changle.It analyzes the basic situation and development process of Changle textile industry,the characteristics of the development,and the issues and difficulties of Changle textile industry for the time being.The fourth part is the data analysis.It discusses the research subject,the data,and the loan situation of the sample enterprises.The paper analyzes the loans in the sample enterprises from 5 perspectives:capital gap,financing channels,product homogeneity,number of cooperative banks,bank-enterprise information sources,borrowing rate,loan period,and security.The fifth part is the analysis of the problems existing in textile SMEs in Changle.On the basis of the fourth part,the paper discusses factors restricting Changle SME loans and the underlying reasons from the perspectives of bank credit policy of the textile industry,SME loan demand and the amount of bank loans available,bank loan duration and SME production cycle,and the collateral requirements of the bank loans for SMEs.The sixth part discusses the countermeasures and suggestions.Based on the above analysis,including the current situation of Changle textile SMEs and the difficulties/reasons of the surveyed textile SMEs,the paper puts forward countermeasures and suggestions to solve the financing difficulties of textile SMEs.On one hand,SMEs should rely on themselves.They should make full use of the advantages of industrial clusters,reduce production costs,increase research and development efforts,improve the added value of the products,and establish long-term a relationship with the bank.Banks,on the other hand,should carry out industry research,collect business proprietary information(not limited to SME financial information and collateral),make full use of the enterprise credit rating and credit settlement products to accelerate the innovation of credit products,and reduce the operational costs of SMEs through the extension of the loan duration,continued loan without principal payment,and mortgage loans.In addition,it is suggested to establish government-bank guarantee system to achieve risk sharing,and to establish government-based load transfer platform.