| The entities involved in local finance include regulatory authorities,financial organizations,industry associations,etc.Among them,small loan companies belong to local financial organizations.As a local financial organization serving small and micro enterprises and agriculture,rural areas,and farmers,small loan companies are committed to providing various financial services for local economic development,such as small loans,financial management,financial consulting,and other services.The simple and efficient loan process has attracted countless loan recipients,and the high profits have also attracted many investors to participate.In the past few years,with policy support at all levels,a large number of small loan companies have emerged in China.As of the end of 2022,there were a total of 5958 small loan companies in China with a loan balance of 908.6 billion yuan,and these two data are still growing at a fast pace.The earliest small loan company in Tai’an City was born in2008,and after continuous development,there were 13 small loan companies in the city with a loan balance of 2.56 billion yuan by the end of 2022.In the past few years of vigorous development of small loan companies,they have injected financial "blood" into many small and micro enterprises.However,with the increase of loan scale,a series of financial risks have also emerged,gradually becoming a hindrance to the development of the industry.In order to help small loan companies identify financial risks and dispose of them in an efficient and low-cost manner,research on financial risk management of small loan companies becomes quite important.This article takes Ningyang County Huaxin Small Loan Company as an example to conduct an in-depth analysis of the company’s financial situation and explore its existing financial risks.Firstly,conduct an overall analysis of the company’s financial situation to determine where financial risks are mainly concentrated.The results show that the company may have financial risks in four aspects: fund recovery,liquidity,operational performance,and compliance issues;Then,conduct in-depth analysis on each aspect and use the financial ratio analysis method to further narrow the scope of financial risks,identifying specific financial indicators with shortcomings;Finally,the factor analysis method was used to quantitatively compare and analyze the financial situation of the company over the years and other small loan companies in Tai’an City.The three financial indicators that had the greatest impact on the company’s financial risk were identified.Then,the F-score model was used to validate the quantitative analysis results,and the quantitative analysis results were objectively evaluated.Based on the evaluation results and in-depth research and analysis of the causes of risks,targeted suggestions for controlling financial risks have been proposed.By studying the financial risk management of Huaxin Small Loan Company in Ningyang County,the aim is to improve the company’s financial risk management level.In addition,comparative research with other small loan companies can also serve as a reference for other small loan companies in Tai’an City to improve their financial risk management,I also hope to provide some reference significance for the research on financial risks of small loan companies,especially empirical research. |
