Financing Channel Expansion Research Of XX Microfinance Company

Being an important supplementary form of traditional credit institutions in China,microfinance companies have made important contributions to solve the problem of financing difficulty and expensive financing for small and medium-sized enterprises.However,due to policy constraints and other reasons,as the scale of the micro-loan industry continues to expand,there are problems of limited scale and high capital cost in the traditional way of financing of microfinance companies,which lead to difficulties in the expansion of microfinance companies.Asset securitization,as an innovative financing model,can effectively expand the financing channels of microfinance companies,reduce the financing cost and promote the development of the company.This paper combines financing theory and practical cases,taking XX Microfinance Company as a typical case,studies and analyses its financing situation and financing channel expansion,then provides XX Microfinance Company with practical and effective innovative financing plan,so as to provide practical guidance for the research of financing mode in the microfinance industry.This paper first analyzes the company situation and financing background of XX Microfinance Company.This Company is a typical microfinance company with 300 million Yuan of registered capital,due to the need of business development,there is a strong demand for financing,but for the reasons of policy constraints,it is now facing with the difficulty of financing.Then,this article first analyses the existing financing channels of XX microfinance company,including three common financing ways: bank loan,internal financing and financial assistant mode.This paper also analyses its financing income and its advantages/disadvantages,but there are some problems of limited scale and so on.In the end,this paper designs asset securitization plan for XX Microfinance Company according to the present situation.By the analysis of the scheme,we find that asset securitization financing is an important supplementary measure for the financing channels of XX Microfinance Company.Comparing with traditional financing ways,asset securitization financing not only can activate credit assets effectively without the financing leverage restriction,but also allow the issue of funds it raised,which can effectively alleviate the pressure of funds.