What is the reason why small and medium-sized enterprises have difficulty in financing?

I think the difficulty of financing for small and medium-sized enterprises is a long-standing systemic problem, and the reasons are multifaceted.

From an enterprise's perspective, there are three key constraints: First, small scale and low accumulation make it difficult to provide effective mortgage and pledge guarantees; second, the financial system is not standardized and information transparency is poor, making it difficult to objectively judge credit status; third,

The problem is that they generally lack core competitiveness, their performance is not stable enough, and their development prospects are difficult to evaluate.

There are also practical difficulties in providing financing to small and medium-sized enterprises from the perspective of banks: 1. Due to poor direct financing channels and diversified financing platforms have not yet been fully opened to small and medium-sized enterprises, most of the capital needs of small and medium-sized enterprises rely on bank credit.

Financing pressure is concentrated in the banking system; 2. The risk compensation mechanism is imperfect, small and medium-sized enterprises have high operating costs and high risks, which are borne by banks alone, making banks more cautious in lending; 3. The bad pre-tax write-off policy is relatively strict, and the strict

Banks' enthusiasm for providing financial services to small and medium-sized enterprises has been affected in the face of evaluation pressures from investors and regulatory agencies.

For small and medium-sized enterprise financing, I recommend going to Mingde to learn about it.

Beijing Mingde Tiansheng Investment Management Center (referred to as "Mingde Tiansheng") is a professional investment institution with private equity investment as its core business.

Mingde Tiansheng is composed of listed company executives and securities brokers who are well versed in China's capital market, corporate strategy and management consultants with rich practical experience, senior investment and financing, legal, financial experts and people with certain government resource backgrounds***

Tongchuang is focused on private equity investment and strategic investment banking services for companies to be listed.

If you still have questions about small and medium-sized enterprise financing, you can click the online consultation button below to chat directly with the teacher.