Traditional Culture Encyclopedia - Traditional stories - What is the theoretical basis of SME financing?
What is the theoretical basis of SME financing?
SME financing refers to the customized financing solutions launched by financial institutions for SMEs. Due to their own characteristics, weak solvency, small financing scale, poor financial standardization, lack of perfect corporate governance mechanism and other issues, SMEs' ability to resist risks is generally weak. Therefore, large financial institutions generally lack relevant financial service plans, mainly because banks have set up complex risk control procedures to control risks, and the final income is generally low. Many small and medium-sized enterprises in China are facing the old problem of financing difficulties. Many excellent start-ups have strong financing needs, but there are not many channels to choose from.
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