Financing of small and medium-sized enterprises

Small and medium-sized enterprises (SMEs) play an important role in China's economic development, but because of their own characteristics and imperfections in the development of China's financial system, the difficulty of financing has always been the bottleneck restricting the development of SMEs, and has become an important factor hindering the rapid development of SMEs. Therefore, analyzing and researching the current situation of financing for SMEs in China, and helping them to find effective ways of financing will be conducive to the reasonable use of financial financing means to solve the financing problems of SMEs. The following financing methods for reference. First, bank financing bank loans is the most conventional, the lowest cost means of financing, direct bank loans generally need enterprises to provide relevant counter-security measures, counter-security measures can be credit, guarantee, mortgage, pledge, lien, etc., but the most common, easy and feasible methods are fixed assets mortgage, rights pledge and guarantee company guarantee. Therefore, SMEs have to take into account their own characteristics, organize their own resources on and off the table, and find a suitable method for themselves. Common methods include: 1. Fixed asset mortgage. Banks generally use different discounts to allocate loan amounts according to different fixed assets. Machines and equipment are generally allocated loans at 1-3% discount, and most banks do not use equipment mortgages at present because it is difficult to dispose of the equipment in the event of risks; land and commercial fronts are generally allocated loans at 5% discount; houses and office buildings are allocated loans at a maximum of 7% discount. For some enterprises with large scale, stable cash flow and heavy assets, some banks, for the sake of business competition, have launched the asset collateralization business, i.e., to re-mortgage the assets that have already been mortgaged and apply for the mortgage registration, which has largely improved the financing capacity of enterprises. In order to higher increase the financing amount of fixed assets mortgage, enterprises can be fixed assets to the guarantee company to set up a mortgage, and by the guarantee company to the bank guarantee loan, through the guarantee of the loan amount can generally reach the assessed value of fixed assets, or higher than its assessed value. For example: if an enterprise applies for a loan to a bank with its own commercial facade, the appraised value of the commercial facade is 10 million yuan, and the enterprise can generally obtain a loan amount of 5 million yuan through a direct loan from the bank; however, if the enterprise applies for a loan to a bank through the guarantee company's guarantee, it can obtain a loan amount of 10 million-15 million yuan or a higher amount of the bank's loan. If the enterprise owns assets with stable cash flow (including but not limited to fee income, rental income and other operating income) as a source of repayment, and has expanded, remodeled, renovated, etc. the relevant operating assets, it can use the operating assets as collateral for the loan, and the receivables related to the operating income as a pledge to apply to the bank for a relatively longer loan, which is commonly referred to as an operating property loan. Operating property loans can generally apply for a higher loan amount, a longer loan period (3 years - 8 years) and flexible repayment methods (monthly interest payments, one-time repayment of the principal at maturity, or the use of installment repayment of the principal, monthly interest payments, etc.). 2, the transfer of rights, pledge loans. (1) Transfer of rights. It is also often referred to as factoring. Enterprises assign the accounts receivable arising from the sale of goods or the provision of services to banks, which provide them with financial services for accounts receivable loans and accounts receivable management. The accounts receivable to be provided for this type of loan has two elements: first, the accounts receivable is that of a large enterprise recognized by the bank; and second, it requires the large enterprise to confirm the assignment of the accounts receivable claim. This type of financing is commonly used for upstream and downstream customers in the industrial chain. (2) Pledge of accounts receivable, or invoice financing. After an enterprise sells goods and issues invoices, it can use the resulting accounts receivable as a pledge and register the pledge to apply for a short-term loan from a bank. Banks handle this type of loan, and if the receivables are not collected upon maturity, the lending enterprise needs to repurchase the invoices and repay the corresponding principal and interest, so this type of loan is relatively inflexible. At present, some guarantee companies carry out the invoice that corresponds to the accounts receivable as a pledge, in the accounts receivable is not recovered, the pledge for invoices and accounts receivable can make the loan period enlarged to one year or longer. (3) Discounted bill of exchange financing. Enterprises to hold the bank acceptance bill of exchange by fully endorsed transfer to the bank to obtain loans, at present, banks generally carry out discounting of bank acceptance bills of exchange, the commercial acceptance bill of exchange issued by the enterprise is more difficult to discount. 3, movable assets pledge loans. At present, China's small and medium-sized enterprises in the total assets of about 60% of the accounts receivable and inventory and other movable assets, how to make movable assets to play a role in financing, financing by way of movable assets pledge is difficult to promote in most banks, mainly because of the supervision of movable assets is not in place, but if the introduction of logistics supervision enterprises, supervision of movable assets, in the signing of the supervision agreement on the pledge of commodity financing can be handled after the loan. 4, credit loans. (1), domestic letter of credit financing. Some domestic banks are currently carrying out a domestic letter of credit loan business, that is, for trade-oriented enterprises, the host bank can apply for the opening of a domestic letter of credit to the seller to issue a payment commitment to the seller to fulfill the payment obligations in the documents in line with the terms and conditions set out in the letter of credit. This is also a more popular form of financing. (2), merger and acquisition loans. For the national industrial policy and bank credit policy, mergers and acquisitions and the target enterprise has a high degree of industrial relevance or strategic relevance, mergers and acquisitions transactions in accordance with the law, belonging to the bank's high-quality customers, you can apply for merger and acquisition of loans from the bank for payment of mergers and acquisitions transaction price. (3) Joint Loan and Joint Guarantee. This is the most common credit loan mode carried out by banks, mainly targeting customers in markets, associations and parks, and initiated by their management committees and associations, with 3-7 customers who know and trust each other as the main body of joint guarantees and joint loans applying for short-term loans from banks. Different banks in this kind of business in different provisions, mainly the proportion of the deposit, loan amount and the main body of the loan requirements on the different, usually the loan amount mastered in the single-family 5 million yuan. 5, standard factory mortgage loans. Industrialization era, the emergence of enterprises specializing in the construction of industrial plants, enterprises to build standard plants, generally with general, supporting, standardization and other characteristics, and sold to the production-oriented small and medium-sized enterprises, small and medium-sized enterprises to buy plants often appear liquidity constraints, so some banks have launched a special plant for small and medium-sized enterprises to buy the park plant plant mortgage business, small and medium-sized enterprises generally need to make a down payment of SMEs generally need to make a down payment of 30%, repayment in installments, the longest repayment period of up to 7 years. Second, mezzanine financing mezzanine financing is a new financing model, mainly equity + debt financing model, using this method of financing institutions are mainly investment companies and private equity fund companies, through this method can be solved in the absence of collateral and no other counter-security measures to obtain much-needed financial support, that is, the enterprise to alienate a portion of the equity, but ultimately repurchase the equity and pay for the future Certain income for the premise of financing, this financing relative to the cost of bank financing is higher. Third, trust financing trust refers to the trustor based on the trust of the trustee, its property rights entrusted to the trustee, by the trustee according to the wishes of the trustor in their own name, for the benefit of the beneficiaries or a specific purpose, management or disposal behavior. 2008, the trust company in the country for the first time to launch the small and medium-sized enterprise trust products, from then on, the trust financing has also become an important source of small and medium-sized enterprise financing. Since then, trust financing has also become an important source of financing for SMEs. At present, there are two types of domestic trust financing for SMEs: one is that trust companies pool their funds in the form of trust contracts and provide loans directly to single SMEs; the other is to introduce government and guarantee institutions to form a multi-party cooperation model of "government, trust, enterprise and guarantee". Recommended by the government, guaranteed by the guarantee company, a number of small and medium-sized enterprises with financing needs to form a project loan package, issued by the trust company trust products, the funds raised to invest in packaged small and medium-sized enterprises. Fourth, financial leasing this financing model is mainly based on small and medium-sized enterprises in the new purchase of equipment or equipment will be sold and repurchased to obtain the loan financing, can promote the core equipment of small and medium-sized enterprises, technological updating and industrial replacement, optimization of the financial structure of enterprises. Usually, there are: 1, the new purchase of equipment financing and leasing. Enterprises do not have money to buy equipment, you can apply to the leasing company, the leasing company to the equipment supplier to buy new equipment, and will be leased to the enterprise to use, the lease expires, the equipment belongs to the enterprise; 2, will own equipment sold back to the lease. SMEs can sell their own equipment at fair value to the leasing company, and then lease the equipment from the leasing company in the form of financial leasing, so as to obtain the funds invested in the equipment. V. Asset Management Company Financing Asset management companies are mainly acquiring and operating financial institutions divested of non-performing assets, after the disposal of non-performing assets, asset management companies have a large amount of money, but its scope of operation determines its funds can only be used for the acquisition of non-performing assets, can not be used for the issuance of loans, a large number of idle funds need to find a way out, and then disguised as a financing has also become the asset management companies are looking for the benefits of the The way out. Specific method is: SMEs can first to the bank or microfinance companies to lend a loan, and then this loan in the form of non-performing loans by the asset management company to acquire, in disguise, to realize the financing. Sixth, small and medium-sized enterprise private placement bond small and medium-sized enterprise private placement bond is small and medium-sized enterprise in a non-public manner, agreed in a certain period of time to pay the interest of the company bond. Private placement bond is one of the most important capital market initiatives, is not required for administrative approval of highly market-oriented products, the use of record issuance, the issuance of enterprises do not set financial indicators, not mandatory credit rating and upgrading, there is no special restrictions on the use of funds raised. The scale of debt issuance by a single enterprise ranges from 30 million yuan to 200 million yuan, and the interest rate of issuance ranges from 7% to 11%. It can be said that compared with other ways of financing small and medium-sized enterprises, SME private debt is more convenient, efficient and flexible. Seven, fund financing in the United States, fund financing is the main channel for small and medium-sized enterprises to obtain financing, half of the funds of small and medium-sized enterprises from the fund; in China, small and medium-sized enterprises financing more than 90% from bank loans, fund financing has just emerged. However, private capital is now rapidly entering the fund industry, the establishment of a large number of venture capital funds, venture capital funds and industrial investment funds, and looking for high-quality, good growth of small and medium-sized enterprises. Small and medium-sized enterprises can seek cooperation with funds to obtain development funds; secondly, for high-quality projects, fund companies can be set up to raise funds from specific targets to solve the source of project funds. Of course, the difficulty in financing SMEs is, on the one hand, due to the fact that the macro-financial policies and financing system faced by SMEs are still to be perfected, and they are not well adapted to the capital needs necessary for the development of SMEs. On the other hand, the credit quality of SMEs is relatively poor compared with that of large enterprises, and information asymmetry increases the difficulty of financing for SMEs. To solve the financing problems of SMEs, it is necessary to combine the actual operation of SMEs, upstream and downstream, credit, industry, and project conditions.

The People's Republic of China*** and the State Law on Promotion of Small and Medium-sized Enterprises, Article 3 of the State will promote the development of small and medium-sized enterprises as a long-term development strategy, and adhere to the equality of rights, equal opportunities, and rules of all types of enterprises, and implement the policy of active support for small and medium-sized enterprises, especially small and micro-enterprises, to strengthen the guidance, improve the services, regulate according to law, and safeguard the rights and interests for small and medium-sized enterprises, especially small and micro enterprises, to implement the policy of actively supporting, strengthening guidance, improving services, regulating in accordance with the law, and protecting their rights and interests, and to create a favorable environment for the creation and development of small and medium-sized enterprises. Article 4 Small and medium-sized enterprises shall operate in accordance with the law, comply with national laws and regulations on labor, safety, occupational health, social security, resources and environment, quality standards, intellectual property rights, finance and taxation, follow the principle of good faith, standardize internal management, and improve the level of operation and management; they shall not harm the lawful rights and interests of laborers, and shall not harm the interests of the social community ****.