Internet Credit,Information Asymmetry And Financing Modes Of SMEs

At present,SME is one of the most important economic subject to promote the development of China's economy.Due to information asymmetry,most SMEs find it difficult to get financial support through indirect finance because of credit problems.The difficulty of SMEs financing has become a social problem to be solved.First,this paper analyzes the current situation of financing difficulty and financing channels of SMEs in China.We find that there are some problems such as low efficiency and high cost in credit evaluation progress of SMEs in 'Enterprise to Bank' and 'Enterprise to Small and Medium Financial Institutions'modes because of information asymmetry.The enterprise credit of most SMEs cannot be recognized by the fund supplier,which leads to the difficulty of SMEs financing.With the development of information technology,internet credit could perform improvement of financing mode of SMEs.Based on Zhima Credit,this paper makes a statement of internet credit and internet credit system.According to the theory of information asymmetry,we prove that internet credit could form a comparative advantage to traditional enterprise credit evaluation on credit evaluation system,enterprise itself and financing market.Then,this paper introduces the internet credit system into financing mode of SMEs and propose two new financing mode of SMEs,'Enterprise to E-commerce platform or Internet Finance platform to fund supplier'mode and 'Enterprise to ERP platform to fund supplier' mode and makes statements of internet credit system of those two modes.We find that those modes have improved credit enhancement and credit production patterns compared with the current indirect financing modes,and the information asymmetry problem is partly solved.Finally,this paper makes case study of three internet lending products with the modes were above mentioned.We make introductions of OneTouch Flow Loan,My Loan of Alibaba and Shangdai Loan of CreditEase,and analyze the operation of those products.The case study proves that those new financing modes are efficient at the level of information asymmetry,which means a lot of solving the difficulty of SMEs financing in China.This paper makes a certain marginal contribution in studying the financing mode of SMEs from the perspective of internet credit system in cases.