Research On The Internet Financing Models Of Small Enterreses

Small business occupies a fatal position in our country’s economy.But due to the weak economic basis and the poor credit features,difficult financing problem has plagued small business’s development for a long while.Moreover the development of online finance has solved this problem.So far with the strong baking of the Chinese government,internet finance assumed a boom type growth in recent years,transforming small business’s financing patterns.Internet finance is newly developed only in recent years,made a very limited research level in this field.And the research is mostly focused on a single domain of internet financing mode.On the other hand,due to the powerful legally binding in internet financing field,analysis surrounding regulatory policy is more common.But in internet financing field,which of the financing mode is fit for small business the most?How should small business choose while facing various financing patterns?What are the influence factors that affect financing success?And what’s the risk of each of them?Faced with these problems,this paper presents the research on four fronts.Main conclusions specific as follows.Firstly,on the basis research of P2P network financing process,financing enterprise groups and risks.This paper found the service scope of P2P network loan is generally widespread,from individual consumption,entrepreneurship to small and middle-sized enterprises production and operations management.It’s approval rate is faster than traditional finance industries(3 hours fastest lending),but there also lies the highest interest rate and the greatest risks,including policy risk,platform’s risk and borrower’s bad debt risk.Secondly,the research on crowd funding can be classified into rewarding crowd funding and equity-based crowd funding.Rewarding crowd funding is mainly instantiated by the individual or small enterprise’s production or creation,to use it as a reward in return to investors.As to the equity crowd funding,it always being launched by a reasonably sized small companies,and dividends and equities are paid for the favor.Financing speed is mainly depend upon the popularity of the project,with an 1 hour financing the fastest and 3 months the slowest limit.The major investment risk of crowd funding is that the capital doesn’t reach the target amount within the prescribed period.Then the raised funds will be returned to the investors’ account.Investors also bear the risk of guaranteed benefits lost.Crowd funding also faced a wide scope financing group.But got a relative lower success rate.By the approaches of demonstration we study the factors that affects crowd funding result.And the result shows in rewarding crowd funding projects,projects in third tier city and arts business got a better financing effect.It’s irrelevant to the total amount of target and the minimum financing amount.In equity-based crowd funding projects,first tier city and hotel industry projects are more popular with investors.Target financing amount and project initiator’s investment proportion is the endogenous variable of attention popularity.First year’s profit level draws a positive correlation with attention popularity,but mainly be affected by target financing amount.The minimum financing amount has no significant influence with the popularity.Thirdly,E-commerce supply chain finance primarily serves the supplier and merchants on the platform.And now it also expansively serves other satisfactory E-business platforms and member enterprises.This mode posses an extremely fast examination and loan approval process.Jing Bao Bei factoring only need three minutes to process the loan and Jing Xiao Dai spend only one second at the soonest.E-commerce supply chain finance gives the borrowers very low interest rates.The lowest reach 0.025%per day and supports checkout at all times.Bad debt levels are lower than bank at the same period.It’s the safest and quickest financing mode.But got a restricted financing group.Fourthly,through the comparison among the three kind of internet financing modes mentioned above,this paper can help small business quickly find an appropriate internet financing mode.For those enterprises who has cooperative ties with E-commerce,the optimal financing choice is E-commerce supply chain finance.For receiving quickly borrowing,free time checkout and the lowest cost.For those individuals or small business who has a good idea and rare products.The priority is rewarding crowd funding financing mode.Not merely to obtain the capital,but also acquire publicities in the later period.For to those who have a certain scale business,and financing for a new project.On account of it requires a large-scale investment of fund,better choose equity-based crowd funding.Due to the high risk of the project,have a certain management experience on the basis of further finance is relatively easier to success.As to other small business can choose P2P financing mode.This mode has a wide applicable group scale,and a more relaxed audit than bank and E-commerce.But it’s interest rate is the highest between the several patterns,either the highest financing cost.