Study On Issues Of Formulating Microfinance Companies’ Financial Strategy

The microfinance company is a completely new private capital organization,which is generated by China’s financial reform and innovation.In recent years,because they are convenient,rapid and more convenient for small and medium enterprises,individuals and commercial households,farmers,these microfinance companies develop rapidly.The microfinance company has become a component of financial service system,it help to ease the financing problems of small companies.It has also provides an important channel for China’s private capital enter the financial sector.Although microfinance companies are in the rapid development,their legal status are not clear.Follow-up funding supply shortage,high lending rates,illegal financing and other management issues of microfinance company attract public attention.In August 2015,the "Non-Depository Loan Organization Regulations(draft)"(hereinafter referred to as the "Regulations")issued by the Legislative Affairs Office of the State Council promulgated in the form of regulations guided the microfinance companies at the administrative regulations level.It is more strict than "micro-credit company pilot guidance" published in 2008.The Regulations went a step further,marking the micro-credit companies enter a new stage of standardized development.Under the background of the new stage,the internal and external environment of the microfinance company is changing dramatically.How to guide the micro-loan companies in the new environment has become the focus of the scholars’ research.Reasonable and effective financial strategy,not only can combine the company’s overall strategic requirements to help the corporate financial system to adapt to the environment but also for the enterprises to create and maintain financial advantages,thereby enhancing the overall competitiveness of enterprises.Therefore,this paper chooses the microfinance company’s financial strategy as the research object,combing the analysis of the micro-credit company’s internal and external environment.We try to provide some useful guidance to more normative development of microfinance industry.The introduction part elaborates the research background,the present situation of the research in China and abroad,the research significance,the research mentality and the method as well as the research frame.The second part combines the theoretical knowledge,the policy document on microfinance company and development process of microfinance companies.The financial strategy theory,including the type of financial strategy,the influencing factors of the development process.The third part of this article is based on the current new environment that China’s microfinance companies faced.The new environment is mainly divided into economic environment,industry competitive environment and internal business environment.We analysis the opportunities and challenges during the development of microfinance companies.The fourth part of this paper is based on the time series of microfinance companies’ life cycle to explore the development and selection of financial strategy,the fifth part is the implementation and evaluation of the financial strategy.This paper chooses the microfinance company as the carrier of the financial strategy analysis,studies the financial strategy of the microfinance company,and hopes to provide some feasible theoretical suggestions for the healthy and sustainable development of the microfinance industry,and enrich the financial strategy theory by widely using it in all walks of industries.