Research On The Financing Mode Of Small And Micro Businesses Under The Circumstance Of Internet Financial

There are a number of small and micro businesses in China,which is an important driving force for increasing employment,contributing tax revenue and promoting the development of innovative activities.However,these enterprises can not raise money easily because of their lifecycle and scale.In traditional mode,small and micro businesses can solve the liquidity problem by self-financing and applying for bank loans.However,due to the high investigation cost and imperfect social credit system,the asymmetry of information between traditional commercial Banks and small and micro enterprises is serious.Most small and micro businesses cannot meet the stringent risk control conditions of bank loans.As a result,small and micro businesses are faced with difficulties in application process,high financing cost and low application rate.The financing of small and micro businesses in China is very difficult.With the rise and development of Internet finance,there are more practical and innovative ways for small and micro businesses to raise money.Supply chain of financial?the raised platform and P2P lending r platform are popular with the small business owners because of the convenience.Firstly,the article introduces the development of the Internet financial and the status of the traditional mode of small micro enterprise financing.Then it takes the PPDAI as an example to discuss which factors affect the financing capabilities of small and micro enterprises.Finally,the article gives the suggestions which can mitigate the financing dilemma of small and micro enterprises.